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The IPO buzz around Ellenbarrie Industrial Gases (EIGL) started strong, but the grey market premium (GMP) is now showing signs of cooling. From trading at a premium of Rs 25-26 in the unofficial market, GMP has slipped to Rs 19 as the final bidding day wraps up. What does this mean for potential investors?
What’s happening with the IPO
The Rs 853 crore IPO (Rs 400 crore fresh issue + Rs 452.5 crore offer for sale) opened on June 24, 2025 and closes today (June 26, 2025). The price band is set at Rs 380-400 per share.
By Day 2, the issue was subscribed around 30 per cent overall. Meanwhile, the GMP has dipped to Rs 19, translating to a 4-5 per cent premium over the upper band, down from earlier levels of over 6 per cent.
Why the GMP is slipping
- A high valuation is making some investors cautious.
- Broader market volatility could be denting sentiment.
- Competition from larger players like Linde India and Inox Air adds to concerns about pricing power.
That said, analysts point to positives: the company is using IPO proceeds to repay Rs 210 crore of debt, fund capacity expansion, and improve margins through higher-value products like argon.
About the company
EIGL, headquartered in Kolkata, has been around since the 1970s. It makes and supplies industrial and medical gases — like oxygen, nitrogen, argon and carbon dioxide — catering to industries such as steel, pharma, healthcare and railways. The company operates eight plants across India, with expansion plans underway to boost capacity.
The takeaway
The fizz in the grey market may have faded a bit, but Ellenbarrie’s fundamentals still appeal to investors with a long-term view. If you’re after quick listing gains, temper your expectations.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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