Apax Partners-Promoted Healthium Medtech Planning $300-$400 M IPO At $1 B Valuation

Healthium Medtech, India’s 2nd largest surgical sutures and medical consumables manufacturer, is on track to hit the share market by this calendar year’s end.

Owned by Apax Partners, a private equity fund from the UK, the Indian company is aiming to obtain capital anywhere between $300 and $400 million through this IPO, to shore up the company’s valuation to $1 billion.

Four investment banks are onboarded for this purpose, namely ICICI Securities, CLSA, Credit Suisse, and Nomura.

However, they haven’t finalised the dates of this move yet.

Apax Partners or the listed investment banks have not officially commented on the matter. But sources close to the company are mentioning that –

• This IPO will consist of an offer for sale or OFS along with a primary portion.
• They will file for DRHP (Draft Red Herring Prospectus) with SEBI by the end of August or early September 2021.

Why is Healthium going public?

The buoyant valuation of the healthcare sector is one of the reasons behind this decision.

Furthermore, Apax Partners-promoted Healthium Medtech’s competitor Poly Medicure has doubled its valuation in the previous 6 months. The latter obtained Rs. 400 crores through a QIP in February 2021.

The buck doesn’t stop here.

Moving ahead, Grand Pharma also made its stock market debut in 2020 to raise $871 million, the biggest ever by a pharmaceutical company. Their stock has witnessed a 33% growth ever since.

In other IPO news from the healthcare sector

• Medical equipment manufacturer Skanray Technologies filed with SEBI for an IPO of Rs.400 crores. This Mysuru-based company has the backing of a private equity firm Ascent Capital.
• Another notable player of this sector, Medi Assists, backed by Bessemer Ventures & Investcorp, also filed for an initial public offering (IPO) of Rs. 840 crores.
• PharmEasy, an app-based medicine retail outlet, has an upcoming IPO. The company has also purchased a 66.1% stake in Thyrocare for about Rs. 4500 crores to fast-track this process.

Did you know?

PharmEasy’s acquisition of Thyrocare is a unique situation where a non-listed company acquired a listed one.

About Healthium Medtech

in 2018, Apax Partners acquired Healthium in a $350 million buyout, offering exits to private equity firms, TPG Growth and CX Partners.

Healthium Medtech, previously known as Sutures India, is one of the country’s leading medical consumables manufacturers. It comprises Healthium Medtech Pvt. Ltd., QNPL, the largest manufacturer of surgical needles globally by volume, and Clinisupplies, the leading supplier of Urology consumables in the UK.

Key company highlights

• The company is present in 70 countries across the globe.
• It holds more than 49 US and Indian patents.
• Healthium Medtech has 5 manufacturing facilities in India and UAE.
• In FY2020, the company reported consolidated revenue of Rs.639 crores and a profit of Rs.33 crores.

Additionally, an ICRA rating report of July 2020 has mentioned that Healthium was facing a demand contraction of its products like sutures owing to the suspension of elective surgeries for Covid-19.

However, that loss of revenue was balanced by the growing demand for urology products and latex gloves.

Reasons for investing in the healthcare sector

The Indian healthcare sector is booming right now, holding immense potential. The recent Union Budget reflected this trend, with the government increasing its spending by 3% of the GDP by 2022.

Additionally, this segment is likely to attain an estimated valuation of $372 billion by 2022, which opens up more possibilities for the players in this segment. Plus, the increasing valuation of pharmaceutical companies makes this sector ideal for thematic investments.

Parting words

Healthium operates globally with a diversified product portfolio, allowing it to glide through the ongoing pandemic successfully. Its worldwide presence also makes it an exciting prospect, as different market demands will keep the revenue ticking.

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Frequently Asked Questions

1. What is the incorporation date of Healthium Medtech?

Healthium Medtech Private Limited was incorporated on 28 December 1992.

2. What is the authorised and paid-up capital figure of Healthium Medtech?

The authorised capital is Rs. 20 crores, and the paid-up capital is about Rs. 9.2 crores.

3. When was the last AGM of Healthium Medtech?

The last annual general meeting of Healthium was on 4 August 2020.