Existing investor Samara Capital and the promoter, Dhirajlal Kotadia and his family, are also likely to sell an about 15-20% stake between them. The potential deal is likely to value SMT at ₹3,500-4,000 crore and the process will be launched by the end of April, said the people.
In 2018, Morgan Stanley acquired its 17% stake in SMT with an investment of ₹160 crore. Samara Capital holds a 32% stake, while Kotak Pre IPO Opportunities Fund owns 6% and the promoters hold the remaining 45%.
SMT was founded by Dhirajlal Kotadia in 2001 with a target of reducing the cost of complex and lifesaving medical devices. SMT is the largest player in the drug-eluting stent market in India with a 31% volume share.
The company, which posted revenue of ₹850 crore in FY23, expects it to grow to ₹1,100 crore in FY24, the people said. SMT had in 2022 filed draft papers for a ₹1,500 crore initial public offering. However, the plan was later kept on hold.
Emails sent to SMT and Morgan Stanley did not elicit any responses till press time Wednesday. A Samara Capital spokesperson declined to comment.
SMT has a robust distribution network that enables it to reach out to several hospitals, ratings firm Crisil said in a report last year. “Higher capacity, healthy prospects for domestic players due to a price cap (on stents), and acquisition of sales and distribution entities in Brazil and Spain should further aid growth in the global market,” it said.
SMT had entered new areas such as structural heart with its acquisition of Bengaluru-based Vascular Concepts & Innovations in 2020.
