Airox Technologies has filed a draft red herring prospectus with Securities Exchange Board of India to raise funds via initial public offering (IPO).
The IPO will be a pure offer for sale of up to Rs 750 crore by its existing shareholders and promoters. The OFS comprises of up to Rs 525 crore by Sanjay Bharatkumar Jaiswal and Rs 225 crore by Ashima Sanjay Jaiswal. Currently, Sanjay Jaiswal holds 70% stake while Ashima Jaiswal has 30% stake in the firm.
JM Financial and ICICI Securities are the lead managers to the issue.
The firm is one of the leading players among the pressure swing adsorption (PSA) oxygen generator providers under its flagship brand Airox. It is a market leader with a market share of 50-55%, in terms of operational private hospital PSA medical oxygen market.
As of March 2022, the company is among the pioneers to facilitate the penetration of on-premise PSA oxygen generators in Indian hospitals with nearly 872 installed and operational PSA oxygen generators.
As of March, 2022, the firm had supplied 872 PSA oxygen generators, which includes 72 PSA oxygen generators to Central Medical Services Society and 34 PSA oxygen generators to other international agencies. It also installed PSA oxygen generators at 710 private hospitals. Currently the company is present in 28 states and three union territories in India.
The firm experienced steady earnings growth in FY21 & FY22 due to significantly increased demand for medical oxygen caused by the COVID-19 pandemic. As a result, the demand for its PSA oxygen generators also increased. The firm sold 285 units of PSA oxygen generators in FY22, as compared to 155 units a year ago.
For Fiscal year 2022, revenue from operations was at Rs 226.60 crore against Rs 72.99 crore a year ago. Net profit for the period stood at Rs 90 crore versus Rs 15.87 crore last year. EBITDA margin surged 54.05% from 32.18%
" The COVID-19 pandemic has exposed the challenges in medical oxygen production and delivery in India, thereby highlighting the importance of producing oxygen on-site with the PSA oxygen generators compared to procurement of oxygen through cylinders", the firm said in its DRHP.
The firm expects demand for PSA generators is expected to grow in the next few years, providing an opportunity to PSA oxygen generators operators for revenue generation through new installations.
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