India: Healthium Medtech files draft papers with Sebi to launch IPO

Healthium Medtech Ltd, the country’s second largest medical consumables and surgical sutures company, has filed draft papers with the Securities Exchange Board of India (Sebi) to raise funds via initial public offering (IPO). Healthium Medtech is promoted by Apax Partners.

In June 2018, the London-based private equity fund acquired close to 100% stake from the then existing shareholders including TPG Growth, CX Partners and founding shareholders for around 1950 crore. TPG Growth owned around 73% while CX Partners held a 12% stake in the firm.

The IPO comprises fresh issue of equity shares worth Rs390 crore and an offer for sale of up to 39.10 million shares by existing shareholders and promoters.

The OFS will see sale of up to 39 million shares by Quinag Acquisition (FDI) and up to 100,000 shares by Mahadevan Narayanamoni. Currently, Quinag Acquisition FDI holds 99.79% stake in the firm.

ICICI Securities, CLSA India, Credit Suisse Securities India and Nomura Financial Advisory and Securities India are lead managers to the issue.

Proceeds from the issue, worth 50.09 crore, will be used to repay debt, while Rs179.46 crore will be invested into its arm Sironix, Clinisupplies and Quality Needles and Rs58 crore will be used for acquisition and other strategic initiatives.

As of 23 August, the firm had total outstanding borrowings of Rs242.77 crore. For fiscal 2021, total revenue from operations stood at Rs713.36 crore against Rs639.18 crore a year ago. Net profit stood at Rs85.43 crore versus Rs36.76 crore a year ago. EBITDA margin was at 21.58% compared with 14.95% last year.

Healthium Medtech focusses on products used in surgical, post-surgical and chronic care. It operates across India, the UK and rest of the world and four focus areas, namely, advanced surgery, urology, arthroscopy and wound care.

As of July, it had 21 patents in India and 11 patents in the US, and a further 22 and six patent applications pending approval in India and US, respectively. It has eight manufacturing facilities of which seven are located in India and one is located in China.

This article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.