Skanray Technologies IPO - 7 Things to Know
Skanray Technologies Ltd, specialized medical devices manufacturer had filed its draft red herring prospectus earlier in the middle of 2021 and had secured SEBI approval for the IPO back in October 2021. Based on the SEBI observations, the company has a 1 year time period till October 2022 by when to complete the IPO formalities. However, Skanray Technologies Ltd is yet to announced the actual dates of the IPO and could happen in the March 2022 quarter.
7 Important Things to Know About Skanray Technologies IPO
1) Skanray Technologies Ltd has filed for a combination of fresh issue and an offer for sale. The fresh issue of shares by Skanray Technologies Ltd will comprise of Rs.400 crore while the offer sale will be for a total of 1,41,06,347 shares of Rs.10 each at a price band to be decided at the time of the IPO. The actual size of the OFS and the overall size of the IPO will eventually predicate on the price band decided upon.
2) The Rs.400 crore fresh issue will be EPS dilutive and will be largely intended to fund the inorganic growth of the company. Skanray Technologies Ltd has been looking for potential mergers and acquisition candidates for niche franchises.
In addition, the fresh issue component will also be applied to fund the working capital requirements of the company and for investing in subsidiaries. Some portion of the fresh issue component will also be applied to capital expenditure and general corporate purposes.
3) The OFS of Skanray Technologies Ltd will see participation from early investors and the promoters of the company. Promoters Vishwa Prasad Alva will participate in the OFS and other participants in the OFS will include Chayadeep Properties, Agnus Capital and Skanray Healthcare Partners LLP. The OFS will also give better floating stock leverage to the company post listing, apart from an exit route to the early investors.
4) Skanray Technologies Ltd was incorporated in the year 2007 to play a catalytic role in the medical devices market. It is engaged in design, development, manufacture and marketing of medical devices. Its portfolio of medical devices includes critical care products, radiology products and respiratory management systems.
Skanray Technologies Ltd currently has 5 manufacturing facilities which includes 2 in India, 2 in Italy and 1 in the Netherlands with combined capacity of 54,200 units per annum.
5) Skanray Technologies Ltd is supported by an in-house R&D team that has till date been granted 27 patents, 49 trademarks and 11 design registrations. The Skanray Technologies IPO is entirely proprietary and that has the potential to create long term value for the company. It has been selling its products to over 1,830 customers spread across 20 countries worldwide. It also has a full-fledged testing centre in Mysore in Karnataka.
6) The company brings to the capabilities that offer it a unique positioning. It is a R&D driven player in the global healthcare market, with a strong portfolio of high quality products. Its deep customer relationships and strong distribution network also help in this business. The company had been making losses till FY20 but has turned around to profits in FY21 and has maintained the momentum in FY22 also.
7) The IPO of Skanray Technologies Ltd will be lead managed by ICICI Securities, Motilal Oswal Financial Services and Nomura Financial Advisory and Securities. They will act as the book running lead managers or BRLMs to the issue. Link Intime Private Limited will act as the registrars to the issue.
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