The IPO market is buzzing with options across industries. Making a choice can be difficult. Let’s consider the two issues opening on June 24 – Kalpataru IPO and Ellenbarrie Industrial Gases IPO. What could offer better value and which is a Subscribe now? With two different businesses, one in real estate and the other in industrial gases, let’s take a look at what’s on offer. .
Kalpataru IPO Vs Ellenbarrie Industrial Gases IPO: Issue size and structure
Kalpataru is coming up with a Rs 1,590 crore IPO which consists of an entirely fresh issue. This means there is no offer-for-sale component, and the company will receive all proceeds for internal use, primarily for debt repayment and general corporate purposes.
Ellenbarrie Industrial Gases, on the other side, is raising Rs 852.5 crore. Apart from the above issue, this mainboard IPO includes a fresh issue worth Rs 400 crore and an offer-for-sale of Rs 452.5 crore by existing shareholders. Thus, not all funds raised will go towards business growth, as a portion will be used to allow existing stakeholders to exit.
Kalpataru IPO Vs Ellenbarrie Industrial Gases IPO: Business focus
Kalpataru is a Mumbai-based real estate developer. It focuses on residential, commercial, and township projects, primarily oriented in the Mumbai Metropolitan Region.
Moreover, it is also a part of a diversified business group with operations across several infrastructure sectors and global presence through other group entities.
Ellenbarrie, in contrast, is a gas manufacturing and distribution company, focusing on industrial and medical sectors. It operates across multiple Indian states with nine production facilities.
Kalpataru IPO Vs Ellenbarrie Industrial Gases IPO: Fund utilisation
Now coming to the objective of the issue, Kalpataru plans to utilise 75% of its IPO proceeds for debt repayment and the remaining 25% for general corporate purposes.
On the flip side, Ellenbarrie intends to repay Rs 210 crore of debt, spend Rs 104.5 crore on setting up a new gas separation unit, and allocate the balance to general corporate needs. The inclusion of capex indicates operational expansion.
Kalpataru IPO Vs Ellenbarrie Industrial Gases IPO: Investor details and timelines
Kalpataru’s IPO is priced between Rs 387 to Rs 414 per share with a lot size of 36 shares. The company has already raised Rs 708 crore from anchor investors such as the Government of Singapore and Bain Capital. The issue opens on June 24 and closes on June 26. Listing is scheduled for July 1.
Ellenbarrie’s IPO has a price band of Rs 380 to Rs 400 per share and a lot size of 37 shares. Key managers for the issue include JM Financial and IIFL Capital. Subscription and listing timelines mirror Kalpataru’s, with allotment on June 27 and listing on July 1.
Kalpataru IPO Vs Ellenbarrie Industrial Gases IPO: Risk factors
As per the DRHP filing, some of the risk factors mentioned by the Kalpataru in the prospectus is that it operates in a sector that is often influenced by economic cycles, regulatory changes, and demand-supply dynamics.
Similarly, Ellenbarrie in its DRHP filing also noted that it faces sector specific risks such as over reliance on oxygen and nitrogen, which made up nearly 87% of its gas revenue in FY24.