**Sahajanand Medical Technologies Plans ₹1,500-2,000 Crore IPO**
Sahajanand Medical Technologies (SMT), a prominent Indian manufacturer of cardiac stents, is preparing to submit its draft IPO papers to the market regulator next month, aiming to raise between ₹1,500 and ₹2,000 crore. This initial public offering (IPO) will be managed by Motilal Oswal, Avendus, Nuvama, and HSBC, with existing investors like Samara Capital, Kotak, and Morgan Stanley set to divest their stakes.
The upcoming IPO will consist solely of an offer-for-sale component, meaning that no new capital will be raised for SMT; instead, all proceeds will benefit the selling shareholders. The draft papers are expected to be filed in July, with a potential listing by the end of the year.
This marks SMT’s second attempt to go public, following a previous IPO plan that was abandoned in 2021. The company, which commands a 25-30% share of India’s drug-eluting stent market, initially sought to raise around ₹1,500 crore through a combination of an offer-for-sale and a primary issue. The funds were intended for debt repayment and to support the working capital needs of its foreign subsidiary, Vascular Innovations. However, the IPO was ultimately postponed. In 2023, SMT raised approximately ₹170 crore from Kotak’s Pre-IPO Opportunities Fund, valuing the company at around ₹3,000 crore.
Since then, SMT has experienced significant growth, with revenues increasing to ₹909 crore in FY24 from ₹801 crore the previous year. However, the company reported a loss of ₹7.4 crore, a decline from a profit of ₹11.9 crore in FY23, according to Tracxn data.
Founded in 1998 by Dhirajlal Kotadia and his family, SMT specializes in developing invasive cardiovascular devices, including coronary and structural heart products. The company has expanded its distribution network and product offerings through several acquisitions, including Imex SC, Zarek, and Vascular Concepts Ltd. Earlier this year, SMT appointed Bhargav Kotadia, a member of the founding family, as its new CEO, succeeding Ganesh Sabat. Additionally, Jose Calle Gordo was appointed as chairman, while Dhirajlal Kotadia transitioned to chairman emeritus, continuing to provide strategic guidance.
As of July 2024, Samara Capital Markets Holding Ltd and NHPEA Sparks Holdings BV, a Morgan Stanley subsidiary, held stakes of 31.4% and 16.2% in SMT, respectively. Kotak’s pre-IPO fund owned another 6%, with the remainder held by the promoters. SMT competes with global giants such as Abbott and Medtronic in the cardiovascular device market.
**FAQ**
**What is the purpose of Sahajanand Medical Technologies’ IPO?**
The IPO aims to allow existing investors to sell their stakes, with no new capital being raised for the company itself.
