Healthium Medtech eyes fundraise via IPO, files draft papers with Sebi

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

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

The IPO comprises fresh issue of equity shares worth 390 crore and an offer for sale of up to 39.10 million shares by existing shareholders and promoters.

The OFS would see sale of up to 39 million shares by Quinag Acquisition (FDI) and up to 100,000 shares by Mahadevan Narayanamoni. Presently, Quinag Acquisition FDI holds 99.79 percent 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, would be used to repay debt, while 179.46 crore would be invested into its arm Sironix, Clinisupplies and Quality Needles and 58 crore would be used for acquisition and other strategic initiatives.

As of August 23, the firm had total outstanding borrowings of 242.77 crore. For fiscal 2021, total revenue from operations stood at 713.36 crore against 639.18 crore a year ago. Net profit stood at 85.43 crore versus 36.76 crore a year ago. EBITDA margin was at 21.58 percent compared with 14.95 percent 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, and arthroscopy and wound care.