Airox Technologies Ltd IPO

Last Updated on January 12, 2024 by BFSLTeam BFSLTeam

Airox Technologies Ltd is one of the leading manufacturers in the PSA oxygen generator industry. As per reports, in 2022, this company was the market leader in the operational private hospital PSA medical oxygen segment, occupying almost 50% to 55% of the total share. 

To continue holding its dominating position in the medical oxygen generator market, Airlox Technologies had planned to launch an IPO worth Rs. 750 crore. However, the plan is on hold now, as the company has withdrawn its DRHP.

If you want to know the latest IPO-related news of this market-leading company, keep reading this blog. We will cover all its details, enabling you to make an informed decision.  

Also Read: How To Apply For An IPO?

About Airox Technologies Ltd

Airox Technologies Ltd is one of the pioneering organisations to introduce on-premise PSA oxygen generators in the Indian hospital industry. As of 31^st March 2022, this organisation has approximately 950+ PSA oxygen generators (installed and operational), along with 10+ years of experience in this segment.

This company is also a market leader in the Indian medical oxygen generation segment. It occupies around 30% to 31% of the total market share and includes both public and private sector hospitals. 

As of now, more than 80% of Indian hospitals procure oxygen via cylinders. However, surveys suggest that by 2027, a majority of them will meet their oxygen demands via PSA generators. To leverage this emerging market, Airox Technologies Ltd is launching its IPO, thus enabling investors to contribute to its long-term growth.   

Airox Technologies Ltd IPO Objectives

Airox Technologies aimed to generate funds worth Rs. 750 crore via an IPO. The shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).    

The main objective behind this IPO is to strengthen Airox’s market position so that it can leverage new growth opportunities. Additionally, the company aims to expand its business in the international market, expand its product offerings, enhance after-sales maintenance service and improve its overall operational efficiency.  

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Airox Technologies Ltd IPO Details

The medical equipment manufacturer filed its DRHP with SEBI on 30 September, 2022. However, in February 2023, it decided to withdraw its IPO offer. The reasons for its withdrawal have not been disclosed yet.

As per the DRHP of Airox Technologies Ltd, the book-running lead managers for this IPO are JM Financial Limited and ICICI Securities Limited. The registrar in this regard is Link Intime India Private Limited. 

The IPO is entirely an Offer for Sale (OFS) of shares aggregating up to Rs. 750 crore. The two promoters- Ashima Sanjay Jaiswal and Sanjay Bharatkumar Jaiswal are the participants of this OFS. The face value is Rs. 10 per share, while the price value and minimum lot size are yet to be declared.

Furthermore, Airox is still to declare its IPO bid opening and closing dates, the cut-off time for UPI mandate confirmation, basis of allotment and the listing date. 

Strengths

The strengths of Airox Technologies Ltd are as follows:

• Airox Technologies is one of the leading companies in both the on-premise PSA oxygen generators and the Indian medical oxygen generation market. 
• Between 2020 and 2022, the figures for PSA oxygen generator installations increased from 42 to 285. According to reports on 31^st March 2022, the company delivered 72 such generators to the Central Medical Services Society and 34 to other international organisations. This indicates Airox’s influential and expanding customer base. 
• This firm has a strategic partnership with AirSep Corporation, an international exporter of molecular sieves and vessels. It also serves as an official distributor of the latter’s products in India and imports equipment from them to manufacture high-quality products. 
• Airox also has a state-of-the-art manufacturing facility. It is equipped with automated systems and modern technology like a 200 HP air compressor which can generate approximately 1,100 CFM of pressurised air, a 200 KV distribution transformer, etc. Thus, the company can scale its operations as per market demands. 
• The promoter, Sanjay Jaiswal has over 20 years of experience in the medical equipment business. Two other independent directors on the company’s board have 30 and 15 years of experience. The qualified and experienced leaders of Airox Technology Ltd ensure its steady growth. 

Also Read: IPO investment strategy

Risk Involved

Now, before investing in an IPO, knowing its associated risks is a must. Here are the risks of investing in the Airox Technologies Ltd IPO:

• The company is dependent on AirSep Corporation for procuring molecular vessels and sieves. Any change in price, material quality or availability shall adversely affect its business and operations. 
• Manufacturing defects from the company’s end can lead to product liability claims, leading to a loss in revenue as well as reputation. 
• An inability to maintain strong working relationships with hospitals and other healthcare organisations can impact sales and marketing efforts.

Summary

Airox Technologies Limited is a market leader in the PSA oxygen generator sector in India. It aims to raise Rs. 750 crore via its IPO in order to improve its product offerings, enhance after-sales service and establish its presence in the international market. The opening, closing and listing dates of its IPO are yet to be declared. 

Now that you know all the latest details of this IPO, you will find it easy to make an informed decision on whether to invest in this company. Do keep a look out for the bid opening and closing dates so that you do not miss your chance when the IPO is active.  

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