Axiom Gas eyes expansion, plans IPO this month-end

Hyderabad: Axiom Gas Engineering Limited, a company engaged in the retailing of Auto LPG, is planning a major expansion across southern and western India and is preparing to enter the capital markets with an initial public offering (IPO) expected in late January 2026, its promoter Mohammed Sadique Banani said on Thursday.

Addressing the media in Hyderabad, Banani said the company currently operates 22 Auto LPG outlets across Telangana, Maharashtra and Karnataka, all of which are company-owned and company-operated (COCO). Of these, 12 outlets are its flagship brand ‘PrimeFuel’ in Hyderabad, eight in Maharashtra and two in Karnataka.

The company began its Auto LPG retail operations in Hyderabad in the early 2010s, capitalising on state government policies that mandated the use of LPG for auto-rickshaws due to its lower emissions and environmental benefits.

“Auto LPG is a cleaner fuel with significantly lower carbon monoxide and particulate emissions. That is why state governments supported it aggressively for public transport,” Banani said.

Unlike traditional fuel retail models, Axiom Gas Engineering Limited does not offer dealerships. “All our outlets are COCO. Since this is a single-product business, we believe full operational control ensures safety, quality and long-term sustainability,” he said.

Banani said the company plans to raise Rs40–45 crore through its IPO. Around 50% of the issue will be reserved for retail investors, with the remainder allocated to institutional investors and high-net-worth individuals.

The Company reported revenue from operations of Rs89.83 crore and a profit (PAT) of Rs7.74 crore in the financial year 2024-25, as compared to revenue from operations of Rs74.53 crore and a profit (PAT) of Rs5.74 crore in FY24. Of the total proceeds, approximately Rs27 crore will be used for expansion, including new outlets, logistics infrastructure and depots. Around Rs7 crore will be used to repay existing loans, which were taken to fund earlier expansion.

The company received regulatory approval for its Draft Red Herring Prospectus (DRHP) in December 2025 and plans to file the Red Herring Prospectus (RHP) by mid-January. The IPO is expected to open in the last week of January, with listing likely in early February.

Hyderabad remains the company’s primary focus due to strong growth in auto-rickshaw numbers. The Telangana government recently approved 65,000 new auto-rickshaws, of which more than 25,000 are expected to run on LPG, creating fresh demand for Auto LPG infrastructure.

“Our journey began in Hyderabad, and now we are ready for the next phase of growth as a public company,” Banani said.