Sahajanand Medical Technologies Files DRHP for IPO on Back of ₹1,210 Crore Revenue and 25% DES Market Share

Surat-headquartered medical device manufacturer Sahajanand Medical Technologies Limited (SMT) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO).

The proposed offering is structured entirely as an Offer for Sale (OFS), meaning the company will not issue fresh equity or raise primary growth capital from the public. Instead, the listing will serve as a liquidity event allowing existing promoters and institutional private equity backers to pare down their holdings.

IPO Structure and Key Selling Shareholders

The issue consists of an OFS of equity shares with a face value of ₹1 each.

Key participating selling entities in the Offer for Sale include:

• Members of the promoter group, including Shree Hari Trust and Dhirajkumar Savjibhai Vasoya.
• Private equity and institutional investors, such as Samara Capital Markets Holding, NHPEA Sparkle Holding B.V., and the Kotak Pre-IPO Opportunities Fund.

The book-building issue will allocate up to 50% of the net offer to Qualified Institutional Buyers (QIBs), at least 15% to Non-Institutional Investors (NIIs), and a minimum of 35% to Retail Individual Investors (RIIs). Motilal Oswal Investment Advisors, Avendus Capital, HSBC Securities and Capital Markets (India), and Nuvama Wealth Management are acting as the book-running lead managers, with MUFG Intime India serving as registrar.

Financial Turnaround and Market Position

Founded in 2001 by Dhirajlal Kotadia, Sahajanand Medical Technologies has grown into an indigenous leader in Class III and Class C/D vascular and structural heart intervention devices. The company was the first globally to receive CE certification for a drug-eluting stent (DES) utilizing a biodegradable polymer.

According to industry data cited in its draft papers, SMT controls approximately 25% of India's domestic Drug-Eluting Stent market.

Financial performance highlights from the DRHP:

• Revenue Growth: Revenue from operations grew to ₹1,210.50 crore in FY26, up from ₹1,024.88 crore in FY25 and ₹901.60 crore in FY24, representing a compound annual growth rate (CAGR) of ~15.88% over the period.
• Bottom-Line Expansion: Profit after tax (PAT) rose sharply to ₹69 crore in FY26, compared to ₹25.15 crore in FY25, marking sustained profitability following a net loss of ₹7.35 crore recorded in FY24.
• Global Footprint: SMT's products—spanning coronary stents, balloons, transcatheter aortic valve implantation (TAVI) systems, occluders, and peripheral drug-coated balloons—are sold across 77 countries supported by dedicated R&D facilities in India and Thailand.

Key Investment Risks

In its draft prospectus, the medtech firm outlined several business and operational risks:

Key operating challenges and risk factors:

• Product Concentration: A substantial proportion of cardiac device sales is heavily concentrated in its flagship product lines, notably the Supraflex Cruz stent family.
• Import Reliance: The company remains dependent on imported raw materials, components, and specialized equipment, leaving operating margins vulnerable to global supply chain dislocations and foreign exchange swings.
• Regulatory Compliance: As a Class III high-risk cardiovascular device manufacturer, changes in stringent price controls instituted by India's National Pharmaceutical Pricing Authority (NPPA) or regulatory delays in overseas certifications can impact commercial timelines and realizations.

Tags: Sahajanand Medical Technologies SEBI Medtech Medical Devices Indian Stock Market Healthcare