Sahajanand Medical Technologies (SMT) is in talks to raise ₹175-200 crore in a pre-IPO round led by existing and new investors, ahead of its public listing later this week. The listing is expected to deliver significant gains to early backers, according to two people familiar with the matter.
The existing investor group led by Samara Capital, Morgan Stanley Private Equity Asia and Kotak Pre-IPO Opportunities Fund is expected to participate in the round alongside new investors, including 360One Asset, WhiteOak Capital and Malabar Capital, the people said.
Other high-net-worth individuals, including Ashish Kacholia, have also participated at a valuation of about ₹3,500 crore, they added.
This is in line with the upper end of the price band of ₹327-344 per equity share. The anchor book is expected to open for subscription on Wednesday.
Morgan Stanley, SMT and 360One declined to comment on the round, while the others did not immediately respond to Mint’s emails.
Early backers
Samara, which invested at an average price of ₹46.40 per share, is expected to make 7.4x gains on its initial investment made about a decade ago. Morgan Stanley, which invested at ₹97.58 per share, is set for a 3.52x return, while Kotak, which invested at ₹262.46 per share, is set to make a 1x gain at the upper end of the price band, according to Mint’s calculations based on the red herring prospectus.
“When Samara came in, we were doing around ₹100 crore in revenue. We’ve since grown to ₹1,200 crore, backed by significant investments across the business,” Bhargav Kotadia, SMT’s promoter and managing director, told Mint in an interview.
Over the next 12 months, the company also onboarded Morgan Stanley as an investor. “We had our own merits, but having ’s backing immensely helped,” Kotadia, who also serves as the chief executive officer, said.
The backing of private equity firms helped SMT institutionalize its operations. “Samara’s operating partners, many of whom had run large corporations, helped us bring in Deloitte as an auditor and also enabled the transition to SAP. They also introduced Jose Calle Gordo, who has added tremendous value as a non-executive director since 2019 and is now our chairman,” he added.
SAP is used by firms and their portfolio companies to drive operational scale, speed up post-acquisition integration and build exit readiness.
IPO structure
SMT’s IPO comprises only an offer for sale by existing investors, through which they plan to sell about 13,822,116 shares with a face value of ₹1 each. This means all capital raised will go to the selling shareholders, comprising the institutional investor group spanning the three firms, Shree Hari Trust (the promoter group) and Dhirajkumar Savjibhai Vasoya. The company will not receive any money from the issue.
With the backing of three private equity investors, Kotadia said the company was now ready to go public after a period of aggressive expansion. The IPO would also help attract talent and facilitate liquidity for existing employees holding employee stock ownership plans (ESOPs), which constitute 4% of the company’s shareholding.
Founded by Dhirajlal Kotadia in 2001, Sahajanand Medical Technologies specializes in advanced medical devices for vascular and structural heart interventions. It initially focused on coronary stents and expanded its portfolio through the addition of structural heart products, including valves and occluders, following acquisitions in 2020. It continues to invest in its product portfolio and manufacturing capabilities.
Growth prospects
The company’s revenue rose to ₹1,210.5 crore in FY26 from ₹1,024.9 crore a year earlier. Its consolidated net profit also increased to ₹69.08 crore from ₹25.15 crore in FY25, according to the latest documents.
Its revenue mix has evolved over the years, with international markets contributing more than half of its overall income. “International markets are much larger, with some developing regions, such as Asia-Pacific, Brazil and the Middle East, growing as fast as India,” said Kotadia.
He added that the company remains optimistic about India as a market, given its population of 1.4 billion and growth rates higher than the market rates. “Europe, while growing more slowly, remains a much larger market than India,” he noted.
The equity shares are proposed to be listed on the NSE and BSE. The book-running lead managers for the public issue are Motilal Oswal Investment Advisors, Avendus Capital Private, HSBC Securities and Capital Markets (India), and Nuvama Wealth Management.