Healthium Medtech, India1 Payments Files DRHP for Fundraising

India’s second-largest surgical sutures and medical consumables company, Healthium, and the country’s largest independent NBFC ATM operator, India1 Payments, have filed draft papers with the market regulator SEBI.

The primary motive of their initial public offer is to raise funds and account for their general corporate purposes, among other financial requirements.

Here’s a quick discussion on these upcoming IPOs and their nitty-gritties.

A Quick Look at Healthium Medtech IPO

Before we proceed, note that Apax Partners back Healthium Medtech as its promoter.

Healthium’s public offer will comprise a new issue of shares amounting to Rs. 390 crores. It will also consist of an offer for sale worth 39.10 million equity shares by its promoters and shareholders.

Here’s a break-up of Healthium Medtech IPO OFS:

• Quinag Acquisition (FDI): A maximum of 39 million equity shares
• Mahadevan Narayanamoni: Up to 100,000 equity shares

Objectives of Healthium Medtech IPO

This leading medical consumable and surgical suture company intends to use its IPO proceeds in these ways:

• Around Rs. 50.09 crores will be used to repay its existing debts.
• An investment worth Rs. 179.46 crores will be made into its subsidiaries, such as Sironix, Quality Needles, and Clinisupplies.
• Another Rs. 58 crores will be used to carry out acquisitions and execute other strategic initiatives.

What about its current financial standing?

Healthium Medtech has an outstanding borrowing amounting to Rs. 242.77 crores. Here are its other key financial highlights for FY 2021:

• Total revenue – Rs. 713.36 crores
• Net profit – Rs. 85.43 crores
• EBITDA margin – 21.58%

Note that reputed entities such as Nomura Financial Advisory and Securities India, CLSA India, Credit Suisse Securities India, and ICICI Securities are appointed as this IPO’s lead managers.

About Healthium Medtech – In a Nutshell

Primarily, Healthium Medtech focuses on products that are extensively used in chronic care, surgical, and post-surgical procedures. This company operates mainly across India and the UK and has gained prominence in several parts of the world. Its focus area includes urology, wound care, advanced surgery, arthroscopy, etc.

By July 2021, Healthium Medtech held 21 patents in the country and 11 patents in the United States. It also boasts of 8 manufacturing units located mostly in India (7 units) and one in China.

A Quick Glance at India1 Payments Ltd IPO

This independent NBFC ATM operator’s initial public offer will comprise a new issue of shares and an offer for sale by its promoters and shareholders. The new issue of shares portion will amount to Rs. 150 crores, whereas the OFS will be of a maximum of 10.31 million equity shares.

The OFS is divided into:

• Banktech Group Pty: A maximum of 10,000 equity shares
• BTI Payments Singapore Pte: Up to 2.51 million equity shares
• India Advantage Fund S3 I: A maximum of 4.99 million equity shares
• India Advantage Fund S4 I: Up to 2.49 million equity shares
• Dynamic India Fund S4 US I: A maximum of 2.16 lakh equity shares

India1 Payments may carry out a pre-IPO placement to access funds worth Rs. 30 crores.

Objectives of India1 Payments Ltd

India1 Payments plans to use its IPO proceeds in these ways:

• It will use Rs. 63.25 crores from the proceeds to pay existing debts.
• Around Rs. 49.27 crores will be used to fund CAPEX met out to set up ATMs.

Where does India1 Payments stand financially?

The key financial highlights of India1 Payment for FY21 are as follows:

• Revenue from operations – Rs. 317.60 crores
• Net profit – Rs. 3.34 crores

Note that for FY21, the gross value of transactions from ATMs amounted to Rs. 439.75 billion. Also, the GTV for the June quarter stood at Rs. 136.39 billion.

Additionally, entities such as IIFL Securities Ltd, Edelweiss Financial Services, and JM Financial are appointed as the lead managers of this IPO.

About India1 Payments Ltd – In Brief

India1 Payments is an independent NBFC ATM operator in the country and a market leader in this space. It was incorporated in 2006 and is promoted by Banktech Group.

By 30 June 2021, this company had operated an active network of nearly 8,520 ATMs in about 14 states and union territories. This independent ATM operator has gradually gained its footing in the market.

Final Takeaway

Both Healthium Medtech and India1 Payments Ltd are well-established in their field of operation. Judging by their scale of operation and financial standing, it is safe to say that these upcoming IPOs will garner ample steam among stag investors.

Regardless, before getting swayed by any of the ongoing market speculations, interested individuals should make it a point to research and analyse the scope of these companies and their limitations.

Catch all the latest updates about these upcoming IPOs, and other public offers here.

 

Frequently Asked Questions

1. When will Healthium Medtech IPO be open for public subscription?

The date of Healthium Medtech IPO is yet to be announced.

2. Where will the IPO shares of India1 Payment get listed?

India1 Payment has not shared information about its stock exchange listing.

3. Who will be the registrar of Healthium Medtech?

Healthium Medtech has not shared information about its registrar.