ipo: Healthium Medtech plans IPO to lift over Rs 1,500 crore

Mumbai: Healthium Medtech, India’s second largest medical consumables and surgical sutures firm, plans to hit the inventory market by the tip of 2021.

Healthium (previously Sutures India), owned by personal fairness fund Apax Companions, is aiming to lift Rs 1,500-2,000 crore via an preliminary public providing, valuing the corporate at about Rs 7,500 crore.

At the least three funding banks together with Credit score Suisse, Nomura and ICICI Securities are prone to be employed for working the method, stated two individuals conscious of the matter.

Apax Companions holds 99.8 per cent of Healthium. The British personal fairness fund had acquired the stake in 2018 from TPG Progress, CX Companions and its founding shareholders for about Rs 1,950 crore. TPG Progress had owned round 73 per cent in Healthium, whereas CX Companions held 12 per cent. The remainder was with the promoters.

An Apax Companions spokesperson declined to remark.

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Sutures India was arrange in 1992 in Bengaluru by LG Chandrasekhar and S Subramanium, former executives with Smith & Nephew and Johnson & Johnson.

Healthium at the moment has a presence in additional than 70 international locations. In India, it provides to 18,000 hospitals and has 1,500 staff. The product portfolio contains surgical sutures, wound closure merchandise together with meshes, pores and skin staplers, cardiac pacing wires, haemostats, in addition to arthroscopy and endoscopy implants and ancillary gadgets. It competes with companies akin to Smith & Nephew, Ethicon and ConvaTec.

Healthium expanded enterprise with its first acquisition in 2009, when it took over Truskin Gloves which was renamed Healthium OEM in 2018. In 2013, Healthium established a three way partnership with Mena Medical Manufacturing for increasing to the Gulf international locations. In 2017, it acquired High quality Needles, a 100 per cent subsidiary of TPG Progress.

Healthium is the fourth largest suture producer on this planet and the second largest within the nation with a market share of 17-18 per cent.

Healthium Medtech Plans IPO to Raise Over ₹1,500 crore

QNPL, which is a step-down subsidiary of the corporate, is the most important surgical needle producer by quantity throughout the globe. The marketplace for surgical sutures is primarily dominated by Johnson & Johnson, via its Ethicon model, which is the market chief in India as properly with an about 55 per cent share.

Healthium operates via subsidiaries akin to Sironix Medical Applied sciences BV, Mena Medical Manufacturing, Sironium Medical Applied sciences and Healthium OEM. It posted consolidated income of Rs 640 crore in FY20. The corporate and its subsidiaries have six manufacturing services in Bengaluru, Sharjah and Andhra Pradesh.

In FY2021, because of the Covid-19 pandemic, the group witnessed a rise in demand for just a few product divisions like latex gloves and urology section merchandise, rankings agency ICRA stated in a report final yr, predicting that its income may gain advantage from this.

Healthium faces competitors from worldwide in addition to home gamers in different product segments, which restricts its margins, ICRA had stated.

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