Indian stent maker giant SMT to sell 30 percent stake for Rs 1100 crores

Mumbai: The promoters of Sahajanand Medical Technologies (SMT) and investors Samara Capital and Morgan Stanley Private Equity Asia is likely to sell a 30 percent stake in the country's largest cardiac stent maker for about Rs 1100 crore ($100-150 million), reports The Economic Times.

Part of the funds raised from the stake sale will be used for clinical trials in the US and for building a Rs 250 crore manufacturing plant in Hyderabad.

Established in 1998, SMT develops and manufactures cardiac products that are sold in 75 countries. Its portfolio includes coronary stents (drug-eluting and bare-metal), renal stents, angioplasty balloon catheters, and other cardiac accessories.

The two private equity firms, Samara Capital and Morgan Stanley Private Equity Asia will each offer part of their 35percent and 18 percent holdings in the company, respectively, while promoter Dhirajlal Kotadia will sell a portion of the 47 percent promoter stake in the Surat-based company.

As per sources, Samara first purchased a stake in SMT in 2016, investing about Rs 170 crore at a valuation of Rs 400 crore. In 2018, SMT raised fresh capital of Rs 230 crore in a round led by Morgan Stanley Private Equity Asia and Samara at a valuation of Rs 1,200 crore.

KPMG, which has been hired to run the stake sale process, has approached a handful of global and Indian private equity funds. SMT is expected to be valued at $300 million, one person aware of the matter told The Economic Times.

After the fundraising in 2018, SMT expanded its presence through buyouts. SMT purchased medical devices firm Vascular Concepts in May this year after it had acquired Brazilian firm Zarek Distribuidora De Produtos Hospitalares last year.

SMT posted revenue of Rs 450 crore and Ebitda of Rs 80 crore in FY20. It expects revenue to rise to Rs 650 crore and Ebitda of Rs 110 crore in FY21, sources told the daily.