Sahajanand joins the queue of medtech companies eyeing IPO in India

by 5paisa Research Team Last Updated: Dec 13, 2022 - 01:26 pm 51.1k Views
Listen icon

Sahajanand Medical Technologies Ltd, which designs, develops, manufactures and markets vascular devices globally, has filed its documents with the capital markets regulator to float its initial public offering.

Mumbai-headquartered Sahajanand joins Healthium MedTech (formerly Sutures India), which had previously filed a draft red herring prospectus with SEBI for an IPO.

The two companies are prominent players in the medical devices and consumables space and would look to add more diversity in the subsectors for investors looking to bet on healthcare companies.

Notably, both the companies already count private equity investors, who are looking to sell part of their stakes through the respective IPOs.

Sahajanand, which claims a strong market share in the drug eluting stent market in India, is looking at an IPO of about Rs 1,500 crore. Of this, Rs 410 crore will go into the company through a fresh issue of shares and the rest will go to the selling shareholders including two private equity firms.

The company intends to use the money it raises in the IPO to retire debt (Rs 255 crore) and another Rs 40 crore for working capital needs.

Sahajanand Medical's business

The company was founded by Dhirajlal Kotadia in 2001. It claims it has grown from around a fifth of the total to grab close to one-third of the market share in terms of volumes for stents in India.

Citing a report by Frost & Sullivan, the company said it is among the top five companies in terms of market share by sales volume of drug eluting stent in Germany, Netherlands, Italy and Poland as of March 31.

It has a direct and distributor sales presence in more than 69 countries, including direct presence in countries such as Germany, Poland, Spain, France, the UK and Brazil.

Currently, it offers products that are used in interventional cardiology, structural heart therapy and peripheral intervention. Interventional cardiology products include devices used for the treatment of blockages in heart vessels (coronary artery disease), such as coronary stents and catheters.

Structural heart therapy devices such as transcatheter aortic valve implants are used to treat abnormalities in the tissues, walls, and valves of the heart. Peripheral intervention devices such as renal stents are used for treatment of blockages in the blood vessels other than those of the heart.

Sahajanand Medical's financials

The company’s revenue rose from Rs 326 crore in 2018-19 to Rs 588.5 crore for 2020-21. However, its margins have come under pressure. Its operating profit has slid in the recent past due to a rise in legal and professional expenses, sales and marketing expenditure, and finance costs.

Exceptional items such as provisions for GST input tax credit and costs related to a phishing attack pushed the company into the red. It posted a net loss of Rs 86 crore for 2020-21 as against a net profit of Rs 13.6 crore and Rs 33 crore for the previous two years.

Share Market Today

How do you rate this article?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
What you must know about Accent Microcell IPO?

Accent Microcell Ltd is a 11 year old company, incorporated in the year 2012 to produce high-quality cellulose-based excipients. These excipients find application in the pharmaceutical, nutraceutical, food, cosmetic and other industries.

Electric Two-Wheeler Sales Surge in November: A Close Examination

In November, sales of electric two-wheelers witnessed impressive growth, totaling just over 91,000 units. This marks a nearly 20% increase compared to the same month last year and a 22% rise from October.

HUL Strategically Divides Beauty and Personal Care for Modern Beauty Brand Challenges

Hindustan Unilever Ltd (HUL) is making strategic moves to enhance its competitiveness in the beauty and personal care market. Starting April 1, the company will split its beauty and personal care division into two separate entities—beauty and wellbeing (B&W) and personal care (PC).