Airox Technologies Pvt. Ltd, which manufactures medical grade oxygen generating plants for hospitals and claims to have a 75% market share, is considering listing on national stock exchanges, said three people familiar with the development.
The Aurangabad-based company was founded by Sanjay Jaiswal in 2011 and in addition to providing medical grade oxygen generating plants for hospitals, it also offers products for industrial oxygen applications.
âThe company is already engaged in talks with a few investment banks and will be meeting with more banks as well as law firms in the coming weeks for the proposed IPO. The IPO plan is at a very early stage and details such as the size of the IPO and the dilution of the stake will be discussed at a later date when a banking syndicate is appointed, but the plan is to explore a listing this calendar year, âsaid the first person cited above. The three people spoke on condition of anonymity.
According to him, Airox has seen a significant increase in its activities due to the Covid-19 pandemic, which has been highlighted by the severe lack of health infrastructure in India to provide sufficient amounts of oxygen to patients of Covid-19, especially during the second wave of April. May 2021.
The second wave of covid-19 which saw a daily spike in cases of more than 4 lakh across the country had created a major oxygen supply shortage, forcing patients to obtain oxygen cylinders from private markets , while the government and private companies have rushed to divert their industrial oxygen supplies to the health care system.
India’s oxygen supply chain has been severely disrupted on several levels due to the sharp and sudden increase in demand across the country, from 3,842 MT per day on April 12, 2021 to 8,400 MT per day on April 25, and still up to 11,000 MT per day by early May – before gradually declining as the number of new cases declined, the Observer Research Foundation noted in a June 2021 report.
âThe company has revenues in the range of Rs 100-200 crore, but is very profitable,â said the first person quoted above.
Emails sent to the company’s promoter, Sanjay Jaiswal, were only answered at the time of publication.
The company has more than 850 facilities across the country with a workforce of more than 125 employees, a service staff of more than 75 and more than 30 distributors, according to its website.
While the pandemic has helped the company grow revenue sharply, some have expressed concerns about the sustainability of its growth.
âThe company is doing very well now, but we cannot know how the pandemic will play out, if we will have variants in the future that will not be as severe as Delta in the past and thus reduce the number of hospitalizations. So the prospects for future growth may be a concern for investors, âsaid the second person cited above, also on condition of anonymity.
Airox is not the only company supplying products that have seen a surge in their needs due to the covid-19 pandemic that is expected to go public.
Skanray Technologies Ltd, founded by Vishwaprasad Alwa in 2007, manufactures medical equipment including patient monitoring systems, high frequency x-ray machines, ventilators and intensive care devices, also filed its draft documents with de Sebi and should be released this year.