India: Morgan Stanley PE picks minority stake in Sahajanand Medical

Visual from SMT website

By Pramugdha Mamgain

January 10, 2018

Sahajanand Medical Technologies (SMT), a maker of cardiac stents, has raised nearly $36 million (Rs 230 crore) in a funding round led by Morgan Stanley Private Equity Asia (MSPEA), it announced on Wednesday.

Existing investor Samara Capital also participated in the round.

As part of the current transaction, a fund managed by Morgan Stanley Private Equity Asia has invested Rs 160 crore in primary capital into the company for a minority stake, SMT said in a statement.

The proceeds from the transaction will be used to finance SMT’s strong organic growth, achieve synergistic acquisitions and build an aggressive R&D program for a further expansion of its portfolio of innovative lifesaving medical devices, it added.

“This investment round will bolster further expansion in overseas markets and assist in building our pipeline of next generation cardiovascular products. As proud early champions of ‘Make in India’, we look forward to making India a global powerhouse for critical medical devices in the near future,” Bhargav Kotadia, Managing Director of SMT, said.

Founded by Dhirajlal Kotadia in 2001, SMT became an early champion of the ‘Make in India’ initiative by being one of the first companies in Asia to indigenously develop and manufacture coronary stents. Currently, SMT develops and makes minimally invasive coronary stents (drug-eluting & bare metal), renal stents, PTCA balloon catheters and other cardio vascular accessories in India.

SMT operates a manufacturing plant in Gujarat and two R&D centers including one in Ireland. Beyond India, SMT also exports its portfolio of life saving devices to UK, Spain, Italy, Netherlands and over 60 other countries.

Arjun Saigal, Co-head of Morgan Stanley Private Equity Asia in India, said, “Lifesciences & Healthcare is one of our core focus sectors in India. The increasing burden of lifestyle diseases combined with the push towards local manufacturing backed by the best in class R&D has led to a significant rise in the use of domestic medical implants. SMT’s high end technology and focus on R&D will make it a key beneficiary of the rapid expansion in treatment volumes and medical infrastructure.”

MSPEA specializes in privately negotiated minority investments in companies with substantial business operations in the Asia-Pacific region. In December 2016, it picked up about 20 per cent stake in ZCL Chemicals Ltd, formerly known as Zandu Chemicals, for Rs 170 crore.

KPMG India served as an exclusive financial advisor to SMT for the transaction.

Also Read:

India: Morgan Stanley PE invests $25m in ZCL Chemicals

India: Fortis in talks to raise capital as part of founders’ stake sale

 

 

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.

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

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  • 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. 
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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.
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