Sahajanand Medical Technologies (SMT), a medical devices firm, has filed a Draft Red Herring Prospectus (DRHP) with market regulator Sebi to raise Rs 1,500 crore through an Initial Public Offering (IPO).
The company, which is backed by private equity firms Morgan Stanley Private Equity Asia and Samara Capital, intends to raise the funding through a combination of fresh issue and Offer For Sale (OFS) of shares.
According to the DRHP (or initial papers), the company intends to raise about Rs 410 crore through a fresh issue and about Rs 1,089 crore through the OFS mode. The IPO will provide partial exits to investors Morgan Stanley Private Equity Asia, which holds a 36.59% stake, and Samara Capital, which holds an 18.44% stake.
Axis Capital, BofA Securities, Edelweiss Financial Services and UBS are the bankers to the issue. The Surat-headquartered company would also look at raising up to Rs 185 crore through a pre-IPO placement of shares. If a pre-IPO placement is undertaken, the fresh issue size will be reduced to such extent, it added.
SMT intends to use about Rs 255 crore of the net proceeds of the IPO to repay debt, and Rs 40.3 crore as working capital requirement of its indirect foreign subsidiaries and balance amount for general corporate purposes.
According to the DRHP, the company had a leading market share of 21%, 25% and 31% of the total drug-eluting stent sales volume in India for the fiscals 2019, 2020 and 2021, respectively, it said in the DRHP.
The company is a medical devices firm that researches, designs, develops, manufactures and markets vascular devices globally.