Ellenbarrie Industrial Gases has entered into a significant renewable energy partnership through a Power Delivery and Offtake Agreement with Pattikonda Renewables Private Limited, executed on January 10, 2026. This strategic agreement represents the company's commitment to enhancing its renewable power energy sources and securing long-term energy requirements.

Agreement Structure and Investment Details

The partnership involves Pattikonda Renewables Private Limited, formed by Ecoren Energy India Private Limited as the promoter, serving as the captive generating company. Ellenbarrie Industrial Gases will function as the captive user in this arrangement.

Power Generation Facility Specifications

The agreement centers around establishing a wind-solar hybrid power generation facility designed to meet Ellenbarrie's captive power requirements. The facility will be strategically located in Ananthapur district, Andhra Pradesh, leveraging the region's renewable energy potential.

Operational Framework and Rights

Under the agreement terms, Pattikonda Renewables will hold comprehensive rights to establish and operate the power generation facility. The producer company will be responsible for the facility's development, commissioning, and ongoing operations throughout the agreement period.

Ellenbarrie Industrial Gases, as the captive user, will have the right to source power from the facility for 25 years from the commencement of commercial operations. This long-term arrangement provides the company with energy security and supports its sustainability objectives.

Regulatory Compliance and Disclosure

The agreement execution was disclosed pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the transaction does not constitute a related party transaction, as the parties involved are not related to the promoter, promoter group, or group companies.

This renewable energy initiative aligns with Ellenbarrie Industrial Gases' strategic focus on sustainable operations while securing reliable power supply for its industrial gas manufacturing activities. The 25-year term provides long-term energy cost predictability and supports the company's environmental sustainability goals.

December 30 proved to be a crucial trading session for two prominent stocks as their shareholder lock-in periods came to an end, creating potential selling pressure in the market. Both Pace Digitek and Ellenbarrie Industrial Gases experienced declines as significant portions of their equity became available for trading.

Share Unlock Details

The lock-in expiry affected both companies differently in terms of scale and impact:

Current Trading Performance

Both stocks are currently trading significantly below their respective IPO prices, reflecting market sentiment and broader challenges:

Analyst Outlook on Ellenbarrie Industrial Gases

Despite the current price weakness, brokerage firm Motilal Oswal maintains a positive stance on Ellenbarrie Industrial Gases. The firm initiated coverage in September with a 'Buy' recommendation and a price target of ₹680.00.

Motilal Oswal highlighted the company's robust business fundamentals, noting that the business model benefits from strong customer retention and high entry barriers. These advantages stem from the essential nature of industrial gases and the structural stability provided by long-term pipeline contracts.

Growth Projections

The brokerage firm has outlined growth expectations for Ellenbarrie Industrial Gases across multiple financial metrics:

EBITDA Growth Trajectory:

• Financial Year 2026: 39%
• Financial Year 2027: 42%
• Financial Year 2028: 43%

Overall Growth Expectations (FY2025-2028):

• Revenue CAGR: 39%
• EBITDA CAGR: 49%
• Profit After Tax CAGR: 52%

These projections are based on expected higher contributions from argon production, green energy initiatives, and capacity expansion programs.

Market Impact Considerations

It is important to note that the conclusion of shareholder lock-in periods does not automatically translate to immediate selling pressure. The unlocked shares become eligible for trading but do not necessarily indicate that all shareholders will divest their holdings in the open market. Market participants will closely monitor trading volumes and price movements in the coming sessions to gauge actual selling interest from unlocked shareholders.

Shares of Pace Digitek and Ellenbarrie Industrial Gases declined as shareholder lock-ins ended on December 30, freeing up ₹103.88 crore and ₹780.78 crore worth of shares respectively for trading.