Pace Digitek, Ellenbarrie Industrial Gases Shares Decline as Shareholder Lock-in Period Ends

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:

Company	Shares Unlocked	Percentage of Equity	Value at Current Price
Pace Digitek	5.60 million	3%	₹103.88 crore
Ellenbarrie Industrial Gases	23.30 million	17%	₹780.78 crore

Current Trading Performance

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

Stock	IPO Price	Current Performance	Trading Price
Pace Digitek	₹219.00	Down 15% from IPO	₹185.50 (down 2%)
Ellenbarrie Industrial Gases	₹400.00	Down 16% from IPO	₹335.10 (down 1.19%)

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-6.14%	-12.50%	-15.41%	-51.31%	-44.93%	-44.93%

Ellenbarrie Industrial Gases Limited , a key player in the industrial gases sector, has reported a mixed set of financial results for the second quarter of the fiscal year 2025-26. The company saw an increase in net profit despite a decline in revenue, showcasing improved operational efficiency.

Financial Highlights

Particulars (in million rupees)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue from Operations	891.73	947.08	-5.84%
Net Profit	367.17	296.52	+23.83%
EBITDA	334.80	362.20	-7.56%
EBITDA Margin	37.54%	38.25%	-71 bps

Ellenbarrie Industrial Gases reported a net profit of 367.17 crore rupees for the quarter ended September 30, 2025, marking a significant increase of 23.83% compared to 296.52 crore rupees in the same period last year. This growth in profit came despite a 5.84% year-on-year decline in revenue from operations, which stood at 891.73 crore rupees for Q2 FY2025-26.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter decreased to 334.80 crore rupees from 362.20 crore rupees in the corresponding quarter of the previous year. Consequently, the EBITDA margin compressed by 71 basis points to 37.54% from 38.25% year-over-year.

Segment-wise Performance

Ellenbarrie Industrial Gases operates in two primary segments:

Gases, related products & services
Project Engineering

The gases segment, which includes the manufacture and supply of industrial gases and by-products, continued to be the major revenue driver. It contributed 879.33 crore rupees to the total revenue in Q2 FY2025-26, compared to 797.00 crore rupees in the same quarter last year.

The project engineering segment, which involves design, engineering, supply, installation, and commissioning of air separation units (ASUs), saw a significant decline in revenue. It contributed 12.40 crore rupees in Q2 FY2025-26, down from 150.08 crore rupees in Q2 FY2024-25.

Balance Sheet and Cash Flow

As of September 30, 2025, Ellenbarrie Industrial Gases reported total assets of 11,460.40 crore rupees, an increase from 8,459.66 crore rupees as of March 31, 2025. The company's equity share capital stood at 281.87 crore rupees, with a face value of 2 rupees per share.

The company generated net cash of 659.23 crore rupees from operating activities during the six months ended September 30, 2025, demonstrating strong operational cash flow.

Recent Developments

Ellenbarrie Industrial Gases completed its Initial Public Offer (IPO) during the quarter ended September 30, 2025. The IPO comprised a fresh issue of 10,000,000 equity shares and an offer for sale of 11,313,130 equity shares by selling shareholders, with shares listed on the National Stock Exchange of India Limited and BSE Limited on July 1, 2025.

The company has also acquired the manufacturing facilities of M/s Truair Industrial Gases in Bengaluru for a consideration of 54.00 crore rupees, which may contribute to future growth and expansion.

Despite the challenges in revenue growth, Ellenbarrie Industrial Gases' improved profitability and strategic initiatives position it for potential growth in the coming quarters.