Airox Technologies IPO

Airox Technologies Limited is one of the leading players among the PSA (“Pressure Swing Adsorption”) oxygen generator providers in terms of operating income, as of Fiscal 2021. As of Fiscal 2022, the company is also a market leader with a market share of 50-55%, in terms of the operational private hospital PSA medical oxygen market. The company is an established player with an experience of more than 10 years in the PSA oxygen generation market and has been able to capture and penetrate the Indian medical oxygen generation market to become a market leader with around 30-31% of the market share as of Fiscal 2022, in terms of total installed operational PSA oxygen generators in India, which includes both public and government sector hospital PSA medical oxygen market. Airox Technologies Limited is present in 28 states and three union territories in India and is further evaluating its expansion into overseas markets, such as Bangladesh, Nepal, Bhutan, Philippines, the African continent, and Indonesia.

Airox Technologies Limited commenced its operations as a manufacturer of PSA oxygen generators in 2012. Over the years, the company has diversified its business by including other products in its portfolios such as AMOG-22 oxygen generators, oxygen analyzers, auto changeover systems, and container-based oxygen generators. The company also provides after-sales maintenance services by entering into annual maintenance contracts and comprehensive maintenance contracts with the customers.

Airox Technologies IPO Details:

IPO Open Date Not Available
IPO Close Date Not Available
Listing Date Not Available
Face Value ₹10 per share
Price Not Available
Lot Size Not Available
Issue Size [●]shares

(aggregating up to ₹750Cr)

Fresh Issue Not Applicable
Offer for Sale [●]shares

(aggregating up to ₹750Cr)

Issue Type Book Built Issue IPO
Listing At BSE, NSE
QIB Shares Offered Not more than 75% of the Offer
NII (HNI) Shares Offered Not less than 15% of the Offer
Retail Shares Offered Not less than 10% of the Offer
Promoters Sanjay Bharatkumar Jaiswal and Ashima Sanjay Jaiswal

Airox Technologies IPO Financial Analysis:

Particulars FY-22(in cr.) FY-21(in cr.) FY-20 (in cr.) CAGR(FY-20 to FY-22)
Revenue from Operations 226.60 72.99 17.13 136.5%
Other Income 3.14 0.27 0.11  
Operational Cost 82.93 38.76 9.98  
Employee Cost 8.21 4.39 3.29  
Other expenses 16.12 6.62 1.85  
EBITDA 122.49 23.49 2.12 286.5%
EBITDA margin% 54.05% 32.18% 12.39%  
Depreciation 0.63 0.58 0.50  
Interest 1.34 1.41 0.80  
PBT 120.52 21.50 0.83 426.5%
Total tax 30.48 5.63 0.07  
PAT 90.04 15.87 0.76 391.1%
PAT margin% 39.73% 21.75% 4.44%  

Pre-Offer shareholding of the Selling Shareholders:

S. No. Name of the Selling Shareholder No. of Equity Shares


Percentage of the pre-Offer paid

Up equity share capital (%)

1. Sanjay Bharatkumar Jaiswal 15,680,525 70.37%
2. Ashima Sanjay Jaiswal 6,601,820 29.62%
Total   22,282,345 99.99%

Offer for Sale Details:

S. No. Name of the Selling Shareholder Amount of the Offer for Sale
1. Sanjay Bharatkumar Jaiswal up to ₹525.00 Crores
2. Ashima Sanjay Jaiswal up to ₹225.00 Crores

Airox Technologies IPO Strengths:

  • Airox Technologies Limited received orders from various state governments and in Fiscal 2022, the company added corporate customers such as Reliance Foundation and Toyota Industries Engine India Private Limited for providing PSA oxygen generators during and after the COVID-19 pandemic. The growth in the customer base is led primarily by the company’s ability to develop innovative processes, meet stringent quality and technical specifications, and manufacture products in a cost-effective manner.

  • Airox Technologies Limited’s focus on product innovation through continuous research and development and value engineering has been instrumental in the growth of its business and in improving its ability to customize products for customers as well as reduce the cost of goods while maintaining margins.

  • The demand of medical oxygen is expected to grow at a CAGR of 7-8% from Fiscal 2020 to Fiscal 2027 in terms of volume. Over 80% of the hospitals in India procure medical oxygen through cylinders. More than half of the demand of medical oxygen is expected to be met through PSA method by Fiscal 2027, which could act as a great growth opportunity for the company.

  • The growth in Airox Technologies Limited’s business operation has been made possible by its widespread sales and distribution network. As of March 31, 2022, the company’s sales, marketing, and finance teams had 30 dedicated personnel responsible for increasing pan-India sales and had four regional vice-president sales, regional managers, and area sales engineers.

  • Airox Technologies Limited has witnessed consistent improvement in its balance sheet position in the last three Fiscals. The company’s ROCE for the Fiscals 2022, 2021 and 2020 was 107.64%, 94.68% and 41.05%, respectively, while the ROE for the Fiscals 2022, 2021 and 2020 was 83.74%, 89.63% and 46.37%, respectively.

Airox Technologies IPO Risk Factors:

  • Airox Technologies Limited relies on its domestic and imported suppliers for certain raw materials such as molecular sieves and vessels, air compressors, oxygen receiver tanks and air receiver tank, pre-filter and post-filter cartridges, etc. Any fluctuations in the price, availability and quality of the raw materials could cause delay and increase costs which may have an adverse effect on the business and operations of the company.

  • A majority of Airox Technologies Limited’s total revenue is attributable to sale of PSA oxygen generators. Any decrease in volume of PSA oxygen generators sold by the company may have an adverse effect on the business, results of operations, financial condition and cash flows.

  • Airox Technologies Limited does not have long-term sale agreements for its products. Any deterioration in demand of any of the key products could have an adverse effect on the business, results of operations, financial condition and cash flows of the company.

  • Airox Technologies Limited’s operations are subject to evolving health, safety and environmental laws and regulatory standards. Non-compliance with and changes in any of the applicable laws, rules or regulations, including pricing, safety, health and environmental laws, may adversely affect the business, results of operations and financial condition and cash flows.

Objects of the Offer:

  • Carry out the Offer for Sale of up to [●] Equity Shares aggregating up to ₹ 7,500 million by the Promoter Selling Shareholders
  • Achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Airox Technologies Limited IPO Prospectus:

Registrar to the offer:

Link Intime India Private Limited

Contact person: Shanti Gopalkrishnan

Tel: + 91 22 4918 6000;