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Medical oxygen generator supplier Aerox explores IPO

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In addition to supplying medical-grade oxygen production plants to hospitals, the Aurangabad-based company, which was founded by Sanjay Jaiswal in 2011, also sells products for industrial oxygen applications.

“The company is in talks with a few investment banks and is going to meet more banks as well as law firms for the proposed IPO in the coming weeks. The IPO planning is at a very early stage, and details such as the size of the IPO and stake dilution will be discussed at a later date when a bank syndicate is appointed. The plan is to find out a list this year,” said the first person cited above.

According to him, Aerox saw a significant jump in business especially during April-May 2021 due to the Covid pandemic, when a devastating second wave and shortage of medical-grade oxygen exposed India’s crumbling healthcare infrastructure.

The second wave, which saw peak daily cases of more than 400,000 across the country, led to a shortage of oxygen supply, resulting in patients scrambling for oxygen cylinders from private markets and black-marketers.

India’s medical oxygen supply chain was severely disrupted due to a huge surge in demand – from 3,842 metric tonnes (MT) per day on 12 April 2021 to 8,400 metric tonnes per day by 25 April, and further to 11,000 metric tonnes per day by the beginning The metric ton was gradually decreasing until May-before as the number of fresh cases fell, the Observer Research Foundation noted in a June report.

“The company has a limit on revenue 100-200 crores, but highly profitable,” said the first person cited above. Emails sent to Promoter Jaiswal did not elicit any response till press time.

According to the company’s website, the company has more than 850 oxygen plants across the country.

While the pandemic has helped the company grow its revenues rapidly, some have expressed concern over the sustainability of its growth.

“The company is doing very well at present, but one cannot be sure how the pandemic will spread and if we will have variants in the future that are not as severe as Delta has in the past and thus require hospitalisation. reduce the number. Therefore, future growth prospects may be a matter of concern for investors,” the second person cited above also requested anonymity.

Airox is among companies that have benefited from demand for products and equipment during the COVID-19 pandemic, planning to go public.

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Usama Younus

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