IPO-bound Sahajanand Medical Technologies aims to become market leader in global vascular devices industry

Cardiac stent maker Sahajanand Medical Technologies, which has been expanding its presence through buyouts, will continue to explore strategic partnerships and acquisition opportunities to fast-track entry into advanced high growth products, its top official said on Sunday.

The company purchased medical devices firm Vascular Concepts in 2020 following the acquisitions of Brazilian firm Zarek Distribuidora De Produtos Hospitalares and Spanish firm Imex Clinic Salud S.L in 2019.

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Sahajanand Medical Technologies (SMT) is a leading medical devices company that researches, designs, develops, manufactures and markets vascular devices globally.

In an interview with PTI, SMT Managing Director Bhargav Kotadia outlined his vision to become the market leader in the global vascular devices industry.

Currently, the company has the highest market share in India in terms of sales in DES (drug eluding stents) and is among the top five companies in terms of market share in each of Germany, Netherlands, Italy and Poland, he said.

The company is looking to further expand its footprint globally and is aiming to enter markets such as the US, Japan and South Korea. Currently, it has presence in 69 countries.

Listing out his focus areas, he said the company will continue to develop and optimise and high-value products; improve margins through captive consumption, efficiency in sales and marketing and improvements on working capital and diversify into other high growth vascular products.

Among others, the company will "continue to evaluate strategic partnership and acquisition opportunities to fast track entry into advanced high growth products, strengthen R&D (research and development) and manufacturing capabilities", he said.

Speaking about the IPO, Katodia said SMT is ready to float its Rs 1,500-crore initial share-sale that will see private equity firm Samara Capital Markets Holding making partial exit. After the IPO, the private equity firm will continue to be a shareholder in the company.

The company filed preliminary papers with capital markets regulator Sebi in September.

The initial share-sale comprises fresh issuance of equity shares worth Rs 410.33 crore and an offer of sale of equity shares to the tune of Rs 1,089.67 crore by selling shareholders, according to the draft red herring prospectus (DRHP).

As part of the offer-for-sale (OFS), Samara Capital will sell shares worth Rs 635.56 crore and Nhpea Sparkle Holdings B.V will offload stocks to the tune of Rs 320.36 crore among others.

Currently, Samara Capital holds a 36.59 per cent stake in the company and NHPEA Sparkle Holding BV owns 18.44 per cent holding in the firm.

The proceeds from the issue worth Rs 255 crore will be used to repay debt and Rs 40.30 crore will be used for funding working capital requirements of SMT's indirect foreign arm Vascular Innovations, and for general corporate purposes.

It operates three research and development facilities, located in Surat, India, Galway, Ireland and Nonthaburi, Thailand.

In addition, the company is in the process of setting up a new research, development and manufacturing campus in Hyderabad to expand its capacity and capabilities, Kotadia said.

On the financial front, SMT revenues sharply rose to Rs 588.5 crore in financial year 2020-21 from Rs 326.1 crore in 2020-19.