Aurangabad-based Airox Technologies Private Limited, which manufactures medical-grade oxygen generation plants for hospitals, is considering floating an initial public offer (IPO) this year.

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The company, which claims to have market share to the tune of 75 percent, has already started discussions with a couple of investment banks and legal firms to chalk out the IPO strategy, according to a report by Livemint quoting sources.

The report, however, said that the talks are in a very early stage at this point, and details like the IPO size and stake dilution are likely to be discussed when the company hires a bank syndicate. The company has not issued an official statement regarding its IPO plan so far.

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Founded by Sanjay Jaiswal in 2011, Airox revenues increased significantly between April and May last year, on the back of record demand for medical-grade oxygen as the country reeled under the second wave of the COVID-19 pandemic.

According to a report, released in June 2021, by the Observer Research Foundation, the demand for medical-grade oxygen shot up from 3,842 metric tonnes (MT) per day on April 12, 2021 to 8,400 MT per day by April 25, and further to 11,000 MT per day by the beginning of May.

Besides supplying medical-grade oxygen generation plants to hospitals, Airox sells products for industrial oxygen applications. Currently, the company claims to have more than 850 oxygen plant installations across the country.

Airox Technologies, according to observers, is "highly profitable" and its revenues are in the range of Rs 100-200 crore. However, skeptics are unsure of the company's profitability when the pandemic subsides or when the hospitalisation rate for cases reduces.

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