Healthium Medtech Ltd (formerly Sutures India), has received the Securities Exchange Board of India’s (Sebi) approval for its initial public offering (IPO), a posting on the market regulator’s website showed on Monday.
The size of the IPO will be approximately Rs 1,500 crore, and the company had filed draft papers with Sebi in September. According to the draft red herring prospectus (DRHP), the company is looking to raise Rs 390 crore through a fresh issue and an offer-for-sale (OFS) of 39.1 million shares by selling shareholders including the promoter.
Funds managed by Apax Partners operate Quinag Acquisition (FDI) Ltd, the company's promoter. Quinag Acquisition (FDI) will sell 39 million shares, while shareholder Mahadevan Narayanamoni will sell 100,000 shares through the offer. The face value of the shares is Rs 1 each.
VCCircle reported in September that Apax Partners may triple its less than three-year-old investment in Healthium Medtech, according to VCCircle analysis.
Healthium is a global medical device company, and is focused on manufacturing products used in surgical, post-surgical and chronic care. Its primary therapy areas include advanced surgery, urology, arthroscopy and wound care.
The Bengaluru-based company plans to use a little more than Rs 50 crore of the net proceeds for repayment of borrowings, Rs 179 crore for investment in its subsidiaries Sironix Medical Technologies B.V, Clinisupplies Ltd and Quality Needles Pvt Ltd, and Rs 58 crore for acquisitions and other strategic initiatives. The rest of the proceeds will be used for general corporate purposes.
The company claims to be the second-largest in the surgical consumables market in India, with a 7.91% share in value terms as of 2020-21 (FY21), and the third-largest company overall in the urology collection devices market in the UK as on March 2021.
The medical device manufacturer will also expand its portfolio by introducing new products in its major focus areas and others.
The company has launched 30 new products over the last three years, which include a patented portfolio of arthroscopy products, mechanical staplers for endoscopic surgeries, and anti-microbial gloves. It also has a pipeline of 15 products at various stages of development across its focus areas.
Healthium acquired Mumbai-based Shri SGK Labs' gelatin sponge brand AbGel in August. Earlier in July, it purchased VitalCare Group, a UK based manufacturer of urology consumable care products. The company, in September, acquired CareNow Medical Pvt Ltd in its third acquisition this year.