Axiom Gas Engineering Ltd IPO

Gas Distribution

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Price Band

₹51 – ₹54

Lot Size

2000

Minimum Bid Quantity

4000

Minimum Investment

₹216000

Issue Size

₹50.75Cr

Opens

2026-09-18

Closes

2026-09-22

Listing

25-09-2026

Subscription Status

Qualified Institutional Buyers

1.1 x

Non-Institutional Investor

0.98 x

Retail Individual Investor

1.85 x

Total

1.36 x

IPO Details

Issue Type

EQUITY

Face Value

₹5

Tick Size

1

ISIN

INE16J201028

Pre-Apply Available

No

Daily Bidding Time

10:00:00 - 17:00:00

About the Company

Axiom Gas Engineering Limited, incorporated in 2007 as Axiom Gas Engineering Private Limited, is engaged in the distribution and retailing of auto liquefied petroleum gas (auto LPG). The company was founded by Alpeshkumar Naginbhai Patel and was joined by Sadique Abdul Kadar Banani in 2012. The promoters have around 26 years of experience in the oil and gas sector. The company operates through a network of auto LPG dispensing stations (ALDS) across Telangana, Karnataka, and Maharashtra. Its operations include procurement of auto LPG, storage, transportation, and distribution to its dispensing stations, where the fuel is sold to end consumers, primarily catering to the transport sector. The company has developed storage and allied infrastructure to support its distribution activities. Its infrastructure includes storage, handling, and dispensing facilities designed to comply with applicable regulatory requirements for auto LPG distribution. The company’s revenues are primarily derived from the retail sale of auto LPG through its ALDS network. Use of proceeds: This is a fresh issue of shares. Therefore, the net proceeds from the fresh issue will go to the company. They will be utilised for the following purposes: Capital expenditure – Rs 27.60 crore Prepayment or repayment of a portion of certain outstanding borrowings availed by our company – Rs 9.12 crore General corporate purposes

Pros

  • • The company claims to own and operate a network of auto LPG dispensing stations along with associated storage infrastructure.
  • • The company claims to have operations across three states, providing geographic diversification.
  • • The company claims to have an integrated operating model from procurement to retail sale of auto LPG.

Cons

  • • The company is highly dependent on a limited number of suppliers for sourcing LPG. Its top three suppliers accounted for Rs 65.70 crore (99.75%) of total LPG quantity purchased in FY26, Rs 61.43 crore (99.42%) in FY25, and Rs 52.40 crore (96.87%) in FY24. Any disruption, delay, or default by these suppliers could adversely affect the company's operations, cash flows, and profitability.
  • • The company relies significantly on its group company, Prime Fuel Logistics Private Limited, for transportation of LPG from suppliers to its ALDS network. Transportation services received from the related party amounted to Rs 3.79 crore in FY26, Rs 4.30 crore in FY25, and Rs 3.66 crore in FY24. Any disruption, delay, accident, or default in transportation could affect supply continuity, operating costs, and profitability.
  • • The company’s LPG transportation and distribution activities involve risks including accidents, fires, explosions, LPG leaks, equipment malfunction, third-party damage, and adverse weather events. Such incidents could result in injuries, fatalities, property damage, environmental pollution, legal proceedings, or suspension of LPG supplies, potentially adversely affecting the company's business, financial condition, and reputation.

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