India’s largest cardiac stent maker Sahajanand Medical Technologies Ltd (SMT) has filed a draft red herring prospectus with the Securities and Exchange Board of India to raise ₹1,500 crore via an initial public offering.
The Samara Capital-backed company’s IPO consists of a fresh issue of ₹410.33 crore and an offer for sale of ₹1,089.67 crore by its existing shareholders and promoters.
The OFS comprises shares worth up to ₹100 crore by Dhirajkumar S Vasoya, up to ₹33.75 crore by Shree Hari Trust, up to ₹635.56 crore by Samara Capital Markets Holding Ltd and up to ₹320.36 crore by NHPEA Sparkle Holding BV.
Currently, Shree Hari Trust holds 35.37% stake in the firm, Samara Capital holds 36.59%, and NHPEA Sparkle Holding BV owns 18.44% stake.
Axis Capital, Bofa Securities India, Edelweiss Financial Services and UBS Securities India Pvt Ltd are the book running lead managers to the issue.
The proceeds from the issue worth ₹255 crore will be used to repay debt and ₹40.30 crore will be used for funding working capital requirements of its indirect foreign arm, Vascular Innovations.
As of June 2021, the firm has total debt of ₹361.35 crore.
It is a leading medical devices company that researches, designs, develops, manufactures and markets vascular devices globally. With a presence in 69 countries, SMT products have gained required regulatory approvals in different geographies for patient usage. SMT pioneered the use of biodegradable polymer technology in both stents and ultra-thin stents with a 60- micron strut thickness.
The firm has a direct and distributor sales presence in more than 69 countries, including direct presence in countries such as Germany, Poland, Spain, France, the UK and Brazil. It operates three manufacturing facilities located in Surat, Bengaluru and Nonthaburi, Thailand. It is currently in process of setting up a new R&D and Manufacturing campus in Hyderabad.
Currently, it offers products that are used in interventional cardiology, i.e., devices used for the treatment of blockages in heart vessels (coronary artery disease), amon others.
As of Mar 2021, it has been granted 67 patents globally with a pipeline of additional 17 patents and four design registrations in India.
For fiscal 2021, its revenue from operations was at ₹588.52 crore against ₹479.91 crore a year ago. Net loss for the period stood at ₹72.34 crore versus ₹25.44 crore last year.
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