Stent maker SMT set for ₹2,000 crore IPO; draft filing next month, bankers onboard
The public offering is ruled by Motilal Oswal, Avendus, Nuvama and HSBC, and one of the above mentioned people will evacuate existing investors such as Samara Capital, Kotak and Morgan Stanley.
The second person said, “The problem will only be a proposal component for sales, and draft articles are expected to be opened with a potential list by the end of this year in July.” He said. This means that the public offering will not increase any new capital for SMT and that all revenues from the sale of stocks will go only to sales shareholders.
Avendus, HSBC and SMT avoiding commenting, others did not answer immediately Mintrequests.
First trial
This would mark SMT’s attempt to open the public after shelving the 2021 public offering plan.
SMT first applied for a public offering in September 2021. La1,500 Crore, which includes both an offspring and the primary problem. The funds were allocated to repay the debt and to support the working capital needs of vascular innovations of foreign subsidiary.
The public offering was then waiting. Instead, SMT grew around LaIn 2023, Kotak’s Pre -IPO Opportunities Fund 170 Crore values the company approximately. La3,000 crore.
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Financial and growth
Since then, SMT has achieved a significant growth. Recorded your income La24 Crore in 24 financially, La588 Crore in FY21. The losses are narrowed La7.4 FY24 La72.38 Crore in FY21. The company also made a profit La11.9 Crore 23 Financial Revenue La801 Crore according to Tracxn data.
“Better financially, the company’s valuation has also improved and sales shareholders are expected to earn great gains from the public offering if they go as they are planned.”
SMT was founded in 1998 by Dhirajlal Kotadia and his family. It develops invasive cardiovascular devices such as coronary, structural heart and closure school products. The company made various purchases such as IMEX SC, Zarek and Vascular Concepts LTD, which expanded its distribution network and product portfolio.
The company recently reorganized its leadership when she appointed Bhargav Kotadia, which was a part of the founding family, replaced Ganesh Sabat earlier this year. Jose Calle Gordo is the president of other appointments, while Dhirajlal Kotadia will pass to President Emeritus according to a company in February and will continue to provide strategic guidance.
As of July 2024, Samara Capital Markets Holding Ltd and Nhpea received 31.4% and 16.2% share, according to a Crisil report, a Crisil report of a Morgan Stanley subsidiary. Kotak’s pre -IPO fund was 6%, the rest belonged to the supporters.
In addition to global players such as SMT, Abbott, Medtronic and Meril, he compete with domestic competitors such as Healthium Medtech and Transumina Thepeutics. India has a market share of about 25-30% in the STENT (DES) segment of India.
Crisil recorded the wide distribution of SMT, better collections, and the presence of markets, but marked great working capital needs, R & D-connected volatility and regulatory exposure in the edge spaces.
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Sector view
In a report, Avendus is expected to grow at one-year growth rate of 14-15% (CAGR) in the next decade of the cardiovascular device market, which is worth $ 200 million in 2023 in 2023.
The wider inclusion of regulatory price limits and stent implants under government plans has helped to increase adoption. The market share of local players increased from 35% to 60%, because global companies were set to lower pricing, while Indian companies took advantage of cost -effective production.
Avendus also emphasized the increasing insurance scope, purchasability and expanding patient base as lock growth drivers.
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