Axiom Gas Engineering Ltd IPO

The business model allows expansion through new stations and increased storage capacity based on market demand.

The Company has operational experience in managing ALDS facilities, logistics coordination, and adherence to safetyprotocols.

The business caters to a steady consumer segment comprising auto-rickshaws, taxis, and small commercial vehicles withpredictable daily fuel requirements.

The company is dependent on few suppliers for sourcing its liquified petroleum gas. As of March 31, 2026,the company procured liquifiedpetroleum gas from three suppliers which constituted more than 95% of its total quantity purchased. Any disruption in thereceipt 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 failures in the supply of liquified petroleum, gas by the company, which could adversely affect itsbusiness, reputation, results of operations and cash flows.

The companys transportation of LPG is majorly done by its related party i.e. Prime Fuel Logistics Private Limited the companys groupcompany. As of March 31, 2026, its transported LPG from the companys group company which constituted more than majority of itstotal transport cost. Any disruption in the transport of such LPG from the companys group company, or delay or default in timelytransportation of the LPG or any mishap happened during transportation could lead to a disruption or failures in thetransportation of LPG by the company, which could adversely affect its business, reputation, results of operations and cash flows.

Transporting LPG is hazardous and could result in accidents, which could adversely affect the companys reputation, business,financial condition, results of operations and cash flows.

LPG is highly flammable and poses significant safety risks if mishandled. Compliance with strict safety regulations andstandards is crucial to mitigate the risk of accidents, fires, and explosions which could adversely affect the companys reputation,business, financial condition, results of operations and cash flows.

The sale of the companys products & services is concentrated in its core market of Karnataka, Telangana and Maharashtra. Anyadverse developments affecting the company operations in such region, could have an adverse impact on its business, financialcondition, results of operations and cash flows.

There have been instances in the past where the company has not made certain regulatory filings with the ROC and there werecertain instances of discrepancies in relation to certain statutory filings and corporate records of the company.

High fixed-cost structure of storage and dispensing infrastructure associated with your business may adversely impactfinancial performance during demand downturns.

Unsecured loans taken by the company can be recalled by the lenders thereof at any time.

The company is highly dependent on location footfall at its ALDS and site performance may affect sales volumes and profitability.

The company is dependent on Public Sector Undertakings (PSUs) for cost of Auto LPG supplied. Any updation reflecting shifts inglobal LPG prices, exchange rates, and local market conditions could adversely affect its business, reputation, operationsand cash flows.