Sahajanand Medical Technologies prepares for market debut with Rs 2,000 crore IPO

Leading stent manufacturer Sahajanand Medical Technologies (SMT) is preparing for a primary market entry, initiating discussions with investment bankers for a potential public issue of up to Rs 2,000 crore, according to sources.

Backed by Morgan Stanley PE Asia and Samara Capital, SMT's IPO will likely include an offer for sale and a fresh issue, with the new shares aimed at raising funds to fuel global growth.

Morgan Stanley PE Asia and Samara Capital collectively hold a 49% stake, while Kotak Pre-IPO Opportunities Fund holds 6%, and the Kotadia family owns the remaining 45%. Morgan Stanley is expected to fully exit the investment as part of its lifecycle, with Samara Capital and Kotak Fund likely making partial exits, sources added.


In response to an ET inquiry, SMT MD Bhargav Kotadia noted that the IPO will strengthen SMT's growth trajectory and deliver greater value to shareholders.

"The company’s decision follows months of consideration, during which SMT attracted interest from major private equities and pharmaceutical players. However, SMT believes the IPO is the most viable path to unlocking its full potential,” he said.

Founded in 2001, SMT has grown to command a leadership position in India’s drug-eluting stent market. In FY24, it reported a topline of over Rs 900 crore and an EBITDA of approximately Rs 125 crore, with positive cash flow and low debt.

Kotadia added that the IPO aligns with SMT’s vision to accelerate its growth, invest in innovative technologies, and provide superior healthcare solutions to patients worldwide.

SMT previously filed a draft red herring prospectus in 2021 to raise around Rs 1,500 crore but decided against proceeding, with promoters opting to list only after reaching a specific scale. “We decided to keep the company private longer to attain the right size and scale before listing,” Kotadia explained.

The IPO will provide capital to further expand SMT’s R&D initiatives, manufacturing capacity, and international presence. SMT’s portfolio includes drug-eluting stents (DES), transcatheter aortic valve implantation (TAVI), occluders, and balloon catheters. Kotadia anticipates that SMT’s international market contribution will rise to 70-80% from the current 60%.