**Relisys Medical Devices in Talks for Major Investment with KKR and TPG**
Relisys Medical Devices is currently engaged in preliminary discussions with prominent global private equity firms KKR and TPG regarding a potential investment ranging from ₹1,200 to ₹1,300 crore. This transaction could facilitate a full or partial exit for existing investor Siguler Guff, according to sources familiar with the situation.
As TPG assesses Relisys to enhance its portfolio, KKR is exploring opportunities to expand its med-tech platform, which recently included the acquisition of Healthium Medtech from Apax Funds. TPG may also be considering the establishment of its own med-tech platform. Should the deal proceed, a significant portion of the investment is expected to be secondary, allowing Siguler Guff to divest its stake, while a smaller primary investment could support Relisys’s growth initiatives.
Both KKR and TPG are anticipated to pursue a controlling interest in the Hyderabad-based medical device manufacturer. In secondary transactions, existing shareholders sell their stakes to new investors, and the company does not receive fresh capital, often resulting in shares being traded at a discount compared to primary equity.
While KKR has refrained from commenting, TPG, Siguler Guff, Healthium, and Relisys have not responded to inquiries.
In February, it was reported that o3 Capital, a mid-market investment bank, was advising Relisys in its search for potential buyers, with Siguler Guff exploring a full or partial exit alongside the company’s founders. The transaction was then estimated to be valued between $50 and $70 million (₹435 to ₹610 crore).
Founded in 1997 by a team of technocrats and clinicians, Relisys Medical Devices specializes in manufacturing cardiovascular products, including drug-eluting stents, balloon catheters, diagnostic catheters, and transcatheter heart valves. The company expanded its stent-making capabilities globally with the acquisition of Multimedics in 2018. In FY24, Relisys reported revenues of ₹169.4 crore, a slight increase from ₹162.7 crore the previous year, with net profit rising marginally to ₹36.3 crore.
The growing deal activity in the med-tech sector highlights the increasing investor interest in Indian medical technology companies. Notable transactions include Meril Life Sciences securing $210 million from Warburg Pincus, which also invested approximately $300 million in Appasamy Associates. Additionally, SMT raised $150 million from Samara Capital, while Translumina garnered around $90 million from Everstone Capital.
India’s med-tech market, currently valued at $12 billion, is projected to reach $50 billion by 2030, according to EY. Despite achieving $3.8 billion in exports last fiscal year, the country remains heavily reliant on imports.
**FAQ**
*What is the significance of the potential investment in Relisys Medical Devices?*
The potential investment from KKR and TPG could provide significant capital for Relisys’s expansion plans while allowing existing investors to exit, reflecting the growing interest in India’s med-tech sector.
