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Company Overview:

Ellenbarrie Industrial Gases (EIGL) is a prominent Indian manufacturer and supplier of industrial and medical gases with over 50 years of experience. It serves a diverse set of industries including steel, pharmaceuticals, healthcare, infrastructure, defence, and aerospace through a wide product portfolio and multi-modal supply methods like onsite, bulk, and packaged deliveries. EIGL holds leadership positions in West Bengal, Andhra Pradesh, and Telangana and operates nine strategically located facilities across East, South, and Central India. It also provides turnkey solutions for air separation units and medical gas pipeline systems.

Objects and Details of the Issue:

*  Total issue of Rs 853 cr, consists of – i) fresh issue worth Rs. 400 cr and ii) offer for sale of Rs. 453 cr by its promoter

*  Proceeds from fresh issue to be utilized for - i) repayment of debt worth Rs. 210 cr and ii) to set up an air separation unit (220 TPD) at Uluberia – II plant with an investment of Rs. 104.5 cr

 Investment Rationale:

*   Well-Established Industry Presence Supported by Favorable Sector Tailwinds

*  Strong Customer Retention through Long-Term Contracts and a Diversified Product Portfolio Across Key Industries

*  Strategic Geographic Presence Backed by a Robust Distribution Network

*  Balanced Business Model with an Optimal Mix of Onsite and Merchant Sales, Focused on High-Growth and Value-Added Segments

*  Ongoing CAPEX and Backward Integration into Plant Manufacturing Positioned as Key Long-Term Growth Drivers

*  Improved Financial Performance

Valuation and Recommendation:

Ellenbarrie Industrial Gases has delivered strong revenue (~23%) and PAT (~72%) growth between FY23–25. With rising demand from large-scale industries under 'Make in India', the industrial gases sector offers significant growth potential. EIGL's focus on pan-India presence, high-value products like Argon and ongoing CAPEX positions well for its long-term growth. The issue is valued at 67.7x its FY25 P/E, appearing at a discount compared to its only listed peer, Linde India. The long term growth prospect in the industry with company expansion provide upside as the business scales and utilization improves. Thus, we recommend SUBSCRIBE to the issue with a long-term investment outlook.

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SEBI Registration number is INH000001766