Airox Technologies has filed a draft red herring prospectus (DRHP) with Sebi to raise funds through an initial public offering (IPO).

The IPO will offer its existing shareholders and promoters a selling price of up to Rs 750 crore. OFS includes up to Rs 525 crore from Sanjay Bharatkumar Jaiswal and Rs 225 crore from Ashima Sanjay Jaiswal. Sanjay Jaiswal holds a 70% stake in the company, while Ashima Jaiswal holds a 30% stake. JM Financial and ICICI Securities are lead managers on this issue.

The company is one of the leading suppliers of pressure swing adsorption (PSA) oxygen generators under its flagship brand Airox. It is the market leader with a 50-55% market share of PSA medical oxygen operating private hospitals.

The company is one of the leaders in driving the penetration of PSA oxygen concentrators deployed in hospitals in India, with nearly 872 PSA oxygen concentrators installed and operating as of March 2022.

As of March 2022, the company has supplied 872 PSA oxygen concentrators, including 72 PSA oxygen concentrators to the Central Medical Service Association and 34 PSA oxygen concentrators to other international institutions. It also installed PSA oxygen generators in 710 private hospitals. Currently, the company operates in 28 states and three federal territories in India.

The company delivered solid earnings growth in FY21 and FY22 due to a significant increase in demand for medical oxygen due to the COVID-19 pandemic. As a result, the demand for its PSA oxygen generators has also increased. The company sold 285 PSA oxygen generators in FY22, compared to 155 a year ago.

In fiscal 2022, operating income stood at Rs 226.6 crore compared to Rs 72.99 crore a year ago. Net profit for the period was Rs 90 crore compared to Rs 15.87 crore last year. EBITDA margin surged from 32.18% to 54.05%
“The COVID-19 pandemic has exposed challenges in the production and supply of medical oxygen in India, underscoring the importance of using PSA oxygen generators to produce oxygen on-site rather than sourcing it from cylinders,” the company said its DRHP.

The company expects demand for PSA oxygen concentrators to grow in the coming years, providing PSA oxygen concentrator operators with the opportunity to generate revenue through new equipment.