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 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.