Samara-backed stent maker SMT files draft papers for $200 mn initial public offering

By Ravindra N Sonavane

  • 28 Sep 2021
Credit: VCCircle

India's largest cardiac stent maker Sahajanand Medical Technologies Ltd (SMT) has filed draft papers for an initial public offering (IPO) worth Rs 1,500 crore ($202 million).

VCCircle was the first to report in June that SMT had signed up four merchant banks for its proposed IPO. https://www.vccircle.com/stent-maker-smt-lines-up-bankers-for-ipo

The Samara Capital-backed company's IPO consists of an issue of shares worth Rs 410.3 crore and an offer for sale (OFS) of Rs 1,089.7 crore by shareholders and promoters.

The OFS comprises shares worth up to Rs 100 crore by Dhirajkumar S Vasoya, up to Rs 33.75 crore by Shree Hari Trust, up to Rs 635.56 crore by Samara Capital Markets Holding Ltd and up to Rs 320.36 crore by NHPEA Sparkle Holding BV.

Currently, Shree Hari Trust holds 35.37% stake in the firm, Samara Capital holds 36.59%, and NHPEA Sparkle Holding BV owns 18.44% stake.

Axis Capital, Bofa Securities India, Edelweiss Financial Services and UBS Securities India Pvt Ltd are the book running lead managers to the issue.

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.

As of June 2021, SMT had a total debt of Rs 361.35 crore.

It is a medical devices company that researches, designs, develops, manufactures and markets vascular devices globally. With a presence in 69 countries, SMT products have gained required regulatory approvals in different geographies for patient usage. SMT pioneered the use of biodegradable polymer technology in both stents and ultra-thin stents with a 60-micron strut thickness.