Airox Technologies has filed a draft red herring prospectus with Securities Exchange Board of India to raise funds via 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.

Airox Technologies is one of the leading manufacturers 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-premises PSA oxygen generators in Indian hospitals with nearly 872 installed and operational PSA oxygen generators. 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 witnessed strong 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 year 2021-22, revenue from operations was at Rs 226.60 crore compared to 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 company believes 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.

Lead Managers: JM Financial and ICICI Securities are the lead managers to the IPO.