Sahajanand Medical Technologies has filed an initial public offering (IPO) with SEBI for Rs. 1,500 crore. The IPO includes a new issuance of Rs.410.33 crore as well as an offer to sell equity shares worth Rs.1,089.67 crore. Dhiraj Kumar S Vasoya is selling shares worth Rs.100 crore, Shree Hari Trust is selling shares worth Rs.33.75 crore, Samara Capital Markets Holding is selling shares worth Rs.635.56 crore, and NHPEA Sparkle Holding BV is selling shares worth Rs.320.36 crore.
Sahajanand Medical Tech, founded in 2001, is a prominent medical device company that focuses in the worldwide research, development, production, and marketing of vascular devices. In FY21, they maintained a 31% market share in the drug-eluting stent market in India. Sahajanand was among the top five corporations in terms of market share in countries such as Germany, the Netherlands, Poland, and Italy as of March 31, 2021. They sell and distribute their products in 69 countries worldwide. Their products are used
in interventional cardiology, structural heart therapy, and peripheral intervention. Their three research and development centres are located in Surat, Galway, Ireland, and Nonthaburi, Thailand. They are also considering a pre-IPO placement of Rs.185 crore. The book-running lead managers for this offering include Axis Capital Ltd, BofA Securities India Ltd, Edelweiss Financial Services, and UBS Securities India Pvt Ltd.
Sahajanand Medical Technologies has 67 patents worldwide, with 17 more in the process and four design registrations in India. As of March 31, 2021, the firm has 946 full-time employees, 410 contract employees, and 24 consultants. Their sales team comprises of 131 salespeople distributed over 37 sites. Sterling AddLife India Pvt Ltd, Fortis Hospitals, Max Hospitals, and Paras Hospitals are some of Sahajanand Med Tech’s most notable clients.
Sahajanand Medical Technologies Limited IPO Objectives
Here are a few quick reasons why Sahajanand Medical Technologies Limited going public:
- Repayment/ prepayment of certain indebtedness availed by the Company and our Subsidiaries.
- Funding the working capital requirements of its indirect foreign subsidiary, Vascular Innovations Co. Ltd. (“Vascular Innovations”).
- General corporate purposes.
Sahajanand Medical Technologies Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 588.52 | 479.9 | 326.11 |
| PAT | 72.38 | 25.43 | 25.43 |
| EPS | 8.13 | 2.69 | 3.67 |
| Total Assets | 861.95 | 631.78 | 520.36 |
| Total Borrowings | 325.10 | 87.21 | 69.64 |
| Equity Share Capital | 8.89 | 8.89 | 8.89 |
Why should you invest in the Sahajanand Medical Technologies Limited IPO?
- They are a major medical device firm that conducts research, designs, develops, manufactures, and markets vascular products globally.
- As of March 31, 2021, they had been granted 67 patents worldwide, with an additional 17 patents and four design registrations in the pipeline in India.
Know before investing
Strengths
- The firm competes in a market with high entry barriers, which means there is less competition, and they provide cutting-edge items.
- In India, Sahajanand Med Tech is the market leader in interventional cardiology, with a market share of 31% in FY21.
- In addition to direct operations in ten countries, the corporation has distributors in 59 more.
Risks
- The company’s market is heavily regulated, which may make obtaining the necessary approvals for various items more difficult.
- There may be instances when the firm is unable to carry out its business strategies, which will impede its growth.
- Foreign currency rate changes will have a significant impact on the company’s operations.
Sahajanand Medical Technologies Limited IPO Noteworthy Highlights:
- The company is the market leader in interventional cardiology in India, capitalising on industry growth drivers.
- Company’s interventional cardiology suite of products, Supraflex, against that of a global leading stent manufacturer demonstrated that Supraflex’s clinical performance is at par on safety factors and numerically superior to others.
- Our revenue from operations in Fiscals 2019, 2020, and 2021 was 3,261.15 million, 4,799.09 million, and 5,885.21 million, respectively. From Fiscal 2019 to Fiscal 2021, our revenue from operations increased at a CAGR of 21.74%.
Sahajanand Medical Technologies – Peer Comparison
| Particulars (In USD Mn) | Medtronic | Boston Scientific | Abbott | Edwards Life Science |
|---|---|---|---|---|
| Revenue | 30,117 | 9,913 | 34,608 | 4,386 |
| EBITDA | 8,236 | 1,723 | 8,618 | 1,431 |
| EBITDA Margin | 27.35% | 17.38% | 24.90% | 32.63% |
| ROE | 7.06 | 0.56 | 13.93 | 18.88 |
| Net Income Margin | 12% | 0.83% | 12.86% | 18.77% |
| Debt to Equity | 53.29 | 62.73 | 60.67 | 15.19 |
Sahajanand Medical Technologies Limited IPO FAQs:
Q1. What is Sahajanand Medical Technologies Limited’s Initial Public Offering?
Ans. Sahajanand Medical Technologies Ltd has filed for an Rs. 1,500 crore IPO with SEBI which comprises a fresh issue of Rs. 410.33 crore and an offer for sale of OFS of Rs. 1,089.67 crore.
Q2. When will allotments for the Sahajanand Medical Technologies Limited IPO become available?
Ans. Details not available.
