Ellenbarrie Industrial Gases files draft papers with SEBI for an IPO

One of the top producers and distributors of industrial gases in Eastern and Southern India, Ellenbarrie Industrial Gases Ltd. offers industrial gases in both bulk and packaged forms. Founded on November 23, 1973, the company has a five-decade history in the gas industry and offers a wide range of services and expertise to the construction, energy, chemical, medical, and defense sectors. Geographically, the business has established itself as a dominant force in the southern regions of the nation. To serve this market, it recently established two manufacturing facilities in Telangana and Andhra Pradesh. The company was the biggest producer of industrial gases in East and South India as of March 31, 2024, based on its installed manufacturing capacity in West Bengal, Andhra Pradesh, and Telangana combined. As of March 31, 2024, the corporation operated eight sites in East, South, and Central India: two were in Andhra Pradesh, one each in Telangana, West Bengal, and Chhattisgarh.

Information about the IPO issue:

The initial public offering (IPO), which consists of a fresh issue of up to Rs. 400 crore and the offer of sale of up to 1.44 crore equity shares by promoter selling shareholders, has a face value of Rs. 2 per equity share.

Padam Kumar Agarwala and Varun Agarwala are each offering to sell up to 72 lakh equity shares as part of the offer. The company may consider raising to Rs. 80 crore through a pre-IPO placement, working with the book-running lead manager. The new issue will be smaller if such a placement is decided upon. Motilal Oswal Investment Advisors Ltd, IIFL Securities Limited, and JM Financial Ltd are the book-running lead managers for the issue. KFin Technologies Ltd. is serving as the registrar for the offer.

Using an IPO, Ellenbarrie Industrial Gases Ltd. is raising money to pay back its debt:

The company intends to use the net proceeds of the new issue, which total Rs. 176.8 crore, to either fully or partially repay or prepay some outstanding borrowings that it has taken out. The establishment of an air separation unit at our Uluberia-II plant, with a capacity of 220 TPD, and general corporate purposes will also receive Rs. 130 crore.

Conclusion: Ellenbarrie Industrial Gases Ltd. is raising money for both expansion and debt repayment.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.