Ellenbarrie Industrial Gases Files For IPO To Raise Rs 400 Crore
The proceeds from the fresh issue will be used for paring debt and capacity expansion.
Kolkata-based Ellenbarrie Industrial Gases Ltd. on Wednesday applied for an initial public offering to raise funds through fresh issue and offer for sale. The IPO consists of a fresh issue of up to Rs 400 crore and an offer for sale of 1.44 crore shares, according to the draft red herring prospectus submitted to the Securities and Exchange Board of India.
Promoters Padam Kumar Agarwala and Varun Agarwal will offload over 72 lakh shares each via the OFS route.
The proceeds from the fresh issue will be used for paring debt and capacity expansion. The company plans to use Rs 177 crore for repayment of outstanding borrowings. While, Rs 130 crore will be deployed for setting up of an air separation unit at its Uluberia-II plant in West Bengal with a capacity of 220 tonnes per day. The plant is expected to be completed by Sept. 30, 2025.
The IPO will be managed by Motilal Oswal Investment Advisors Ltd., IIFL Securities Ltd. and JM Financial Ltd.
As on March 31, 2024, the company has a debt of Rs 177 crore.
Ellenbarrie Industrial Gases manufactures and supplies industrial gases including oxygen, carbon dioxide, acetylene, nitrogen, helium, hydrogen, argon and nitrous oxide, as well as dry ice, synthetic air, fire-fighting gases, medical oxygen, liquid petroleum gas, welding mixture and speciality gases catering to a wide range of end-use industries.
The company's clients include Dr. Reddy's Laboratories Ltd., Laurus Labs Ltd., Jupiter Wagons Ltd., GMM Pfaudler Ltd. as well as the Indian armed forces.
The company reported a revenue from operations of Rs 269.4 crore and net profit of Rs 45 crore in the previous fiscal.
Ellenbarrie Industrial Gases was listed on Calcutta Stock Exchange, but was subsequently delisted in July 2018. Trading of shares on the BSE under 'Permitted to Trade Category' was also suspended in March 2017.
