IPO Details
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IPO Size
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Schedule of Axiom Gas Engineering IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Axiom Gas Engineering IPO
The IPO of Axiom Gas Engineering Ltd comprises a fresh issue and an offer for sale. While the fresh issue is up to 93,00,000 equity shares, the offer for sale consists of up to 10,00,000 equity shares. It’s a 100% fixed price issue. The IPO opens on TBA and closes on a date TBA. The date of allotment is TBA. The credit of shares to the demat account will take place on TBA and refunds will be initiated on TBA.
Objectives of Axiom Gas Engineering IPO
- Capital expenditures
- Repayment of borrowings
- General corporate purposes
Axiom Gas Engineering IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 93,00,000 equity shares |
Offer for Sale | Up to 10,00,000 equity shares |
EPS in ₹ for FY 24 | 229.63 |
Industry Outlook
The oil and gas sector is among the eight core industries in India and plays a major role in influencing the decision-making for all the other important sections of the economy. India’s economic growth is closely related to its energy demand, therefore, the need for oil and gas is projected to increase, thereby making the sector quite conducive for investment. India retained its spot as the third-largest consumer of oil in the world as of 2023.
Oil demand in India is projected to register a 2x growth to reach 11 million barrels by 2045. Consumption of natural gas in India is expected to grow by 25 billion cubic metres (BCM), registering an average annual growth of 9% until 2024.
Company Information
Axiom Gas Engineering Ltd is in the arena of green energy engineering solutions. The company specialises in Auto LPG, CNG, and LNG solutions, catering to both retail and industrial sectors with a commitment to quality, innovation, and environmental sustainability. Its core business and fastest-growing division is the sales of Auto LPG from its own Auto LPG Dispensing Stations (ALDS) network and storage infrastructure across Telangana, Karnataka, and Maharashtra.
Strengths of Axiom Gas Engineering
Expertise in Executing Projects in Challenging Geographical Locations
Axiom Gas Engineering Ltd excels in executing projects in geographical locations, which requires a deep understanding of local regulations, environmental considerations, and logistical complexities. It has established strong local partnerships and leverage local expertise to navigate regulatory frameworks and logistical challenges effectively. Its tailored project plans address specific geographical challenges such as terrain, weather conditions, and accessibility issues.
Cost Optimisation Strategies Without Compromising Safety Standards
The company prioritises cost optimisation without compromising safety standards, a critical aspect of our project execution strategy. The company identifies opportunities to optimise costs through efficient design, material selection, and construction methodologies, all while maintaining the highest safety standards. It negotiates competitive rates with suppliers and contractors, ensuring strict adherence to safety protocols and quality standards.
Innovation in Developing and Implementing Cost-Effective Technical Solutions
Innovation is central to its approach in driving cost-effectiveness and efficiency in its operations. It embraces cutting-edge technologies such as digital modelling, automation, and IoT to optimise processes and reduce operational costs. Its team develops tailored technical solutions that meet specific project requirements while optimising costs. It fosters a culture of innovation and continuous improvement across its teams, encouraging new ideas and solutions that enhance its ability to deliver superior value to its clients.
Leveraging Global Engineering Resources to Deliver Superior Value
By leveraging global engineering resources, the company accesses diverse expertise, technologies, and best practices to optimise project execution. It efficiently allocates global resources based on specific project requirements, ensuring that the right expertise is applied to each project.
Benchmarking its performance against global standards allows it to continuously improve project outcomes and deliver enhanced value to its clients, setting us apart in the Auto LPG retail industry
Risks of Axiom Gas Engineering
- Dependence on Few Suppliers for Sourcing LPG
The company is dependent on few suppliers for sourcing its liquified petroleum gas. As of June 30, 2024, it procured liquified petroleum gas from four suppliers which constituted more than 99% of its total quantity purchased.
Any disruption in the receipt of liquified petroleum gas from these third parties, or delay or default in timely sourcing of the liquified petroleum gas could lead to a disruption or failure in the supply of liquified petroleum, gas by it , which could adversely affect the company’s business, reputation, results of operations and cash flows.
- Dependence on Group Company for LPG Transportation
The company’s transportation of LPG is majorly done by its related party i.e. “Prime Fuel Logistics Private Limited” its group company. As of June 30, 2024, the company transported LPG from its group company which constituted more than 96% of its total transport cost.
Any disruption in the transport of such LPG from the group company, or delay or default in timely transportation of the LPG or any mishap happened during transportation could lead to a disruption or failure in the transportation of LPG by Axiom, which could adversely affect its business, reputation, results of operations and cash flows.
- Compliance With Safety Regulations
The sale of their products & services is concentrated in the core market of Karnataka, Telangana and Maharashtra. Any adverse developments affecting their operations in such region, could have an adverse impact on their business, financial condition, results of operations and cash flows.
Axiom Gas Engineering IPO Financials
Peer Comparison
| Company Name | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share in ₹ |
|---|---|---|---|
Axiom Gas Engineering Ltd | 229.63 | 41.45 | 5.43 |
Confidence Petroleum India Ltd | 3.22 | 8.82 | 33.35 |
Aegis Logistics Ltd | 11.73 | 17.26 | 67.87 |
IPO Registrar and Book Running Lead Manager
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Corpwis Advisors Pvt Ltd
Business Model
Axiom Gas Engineering Ltd offers a diverse range of services encompassing:
- Gas and Pipe Engineering
- Turnkey Services
- Statutory Testing and Certification
- Technical Consultancy
- Maintenance Operation and Training
- Manufacturing Pressure Vessels Through Third-Party Collaboration
- Industrial and Commercial LPG
The company’s business model revolves around delivering value through quality execution and comprehensive services across both upstream and downstream segments of the petroleum industry.
Company Growth Trajectory
The revenue from operations of Axiom Gas Engineering Ltd jumped from ₹47.5489 crores in FY 22 to ₹74.5380 crores in FY 24. Its PAT margin grew from 3.31% in FY 22 to 7.70% in FY 24, while EBITDA margin as of revenue from operations jumped from 7.28% in FY 22 to 13.43% in FY 24.
Rapid deployment capabilities to minimise turnaround times and commitment to delivering sustainable projects with excellence in health safety and environment have contributed to the company’s growth over the years.
Market Position
Headquartered in Hyderabad, Axiom Gas Engineering Ltd had 18 auto LPG dispensing stations in the states of Telangana, Maharashtra and Karnataka as of June 30, 2024. Its brand PrimeFuel perfectly encapsulates the vision and ambition of Axiom Gas Engineering Ltd’s innovative fuel dispensing network.
By emphasising sustainability, operational efficiency, and customer convenience, ALDS strengthens its market presence, fosters long-term customer loyalty, and maintains a competitive edge in the LPG industry.
Axiom Gas Engineering Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 74.5383 | 58.0159 | 47.5576 |
Profit / (Loss) Before Tax (in ₹ crores) | 7.6899 | 2.4895 | 2.1232 |
Profit After Tax (in ₹ crores) | 5.7408 | 1.8589 | 1.5751 |
EPS in ₹ | 229.63 | 74.36 | 63.00 |
Axiom Gas Engineering Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit / (Loss) Before Tax (in ₹ crores) | 7.6899 | 2.4895 | 2.1232 |
Net Cash flow from/(used) in Operating Activities (in ₹ crores) | 4.7058 | 2.3595 | 4.7352 |
Net Cash flow from/(used) in Investing Activities (in ₹ crores) | (12.7611) | (2.1243) | (7.1259) |
Net Cash flow from/(used) in Financing Activities (in ₹ crores) | 10.2274 | (0.2855) | 2.1683 |
Cash & Cash Equivalents at the end of the Period (in ₹ crores) | 2.8230 | 0.6508 | 0.7012 |
How to Check Allotment Status of Axiom Gas Engineering IPO?
1.Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ under ‘Investors’ from ‘Products’
- Click on any one of the links shown
- Choose the IPO name from dropdown
- Enter your application number, Demat account number or PAN number
- Enter captcha and click on ‘Submit’ to know the status
- Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Axiom Gas Engineering Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Axiom Gas Engineering IPO?
-Step 1.Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
-Step 2.Specify IPO details - Enter the number of lots and the price you wish to apply for.
-Step 3.Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
-Step 4.Mandate Notification - Your UPI app will receive a mandate notification to block funds.
-Step 5.Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Axiom Gas Engineering IPO FAQs
Where can I read more about Axiom Gas Engineering business?
You can read more about Axiom Gas Engineering and its IPO from the company’s red herring prospectus (RHP) here.
What is the Axiom Gas Engineering Ltd IPO?
The IPO of Axiom Gas Engineering Ltd comprises a fresh issue and an offer for sale. The fresh issue is up to 93,00,000 Equity Shares while the offer for sale is up to 10,00,000 equity shares.
When will the IPO of Axiom Gas Engineering Ltd IPO go live?
The exact dates of the IPO are yet to be announced.
