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.