MUMBAI: Healthium Medtech Ltd, the country’s second largest medical supplies and surgical sutures company, has filed drafts with the Securities Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO). Healthium Medtech is funded by Apax Partners.
In June 2018, the London-based private equity fund acquired almost 100% of the shares from the then shareholders, including TPG Growth, CX Partners and founding shareholders for around ₹1950 million. TPG Growth held around 73% while CX Partners held a 12% stake in the company.
The IPO includes the re-issue of shares valued at Rs. 390 billion and an offer to sell up to 39.10 million shares by existing shareholders and promoters.
The OFS will sell up to 39 million shares in Quinag Acquisition (FDI) and up to 100,000 shares in Mahadevan Narayanamoni. Quinag Acquisition FDI currently holds 99.79% of the shares in the company.
ICICI Securities, CLSA India, Credit Suisse Securities India and Nomura Financial Advisory and Securities India are lead managers of the issue.
Proceeds from the issue, worth it ₹Rs. 50.09 billion will be used to pay down debt, while Rs. 179.46 billion will be invested in the Sironix, Clinisupplies and Quality Needles branches, and Rs. 58 billion will be used for acquisitions and other strategic initiatives.
As of August 23, the company had total outstanding loans of Rs 242.77 billion. For the 2021 financial year, total operating income was Rs 713.36 billion compared to Rs 639.18 billion a year ago. Net profit was Rs 85.43 billion compared to Rs 36.76 billion a year ago. The EBITDA margin was 21.58% compared to 14.95% in the previous year.
Healthium Medtech focuses on products that are used in surgical, post-operative and chronic care. It operates in India, the UK and the rest of the world and has four focus areas namely advanced surgery, urology, arthroscopy and wound care.
As of July, the company had 21 patents in India and 11 in the United States, plus another 22 and six pending approval in India and the United States, respectively. It has eight production facilities, seven in India and one in China.
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