SMT (Sahajanand Medical Technologies) raises INR 230 crores of Equity Capital
Mumbai, January 10, 2018: SMT, the leading manufacturer of cardiac stents in India, is pleased to announce that it has successfully raised equity to the tune of Rs. 230 crore in a funding round led by Morgan Stanley Private Equity Asia. Existing Investor Samara Capital also participated in the round.
Founded byMr. Dhirajlal Kotadia in 2001, SMT became an early champion of the ‘Make inIndia’ initiative by being one of the first companies in Asia to indigenouslydevelop & manufacture coronary stents. Today, SMT is the largest developer,manufacturer and market leader of minimally invasive coronary stents(drug-eluting & bare metal), renal stents, PTCA balloon catheters and othercardio vascular accessories in India. Beyond India, SMT also exports itsportfolio of life saving devices to UK, Spain, Italy, Netherlands & over 60other countries.
SMT operatesa WHO-GMP certified manufacturing plant in Gujarat and two world-class R&Dcenters, including one in Ireland. The Company has a strong focus on R&Dand has a number of pioneering achievements to its credit including being thefirst company in the world to receive the CE certification for a drug elutingstent with biodegradable polymer. Further, SMT has published severalclinical studies in leading cardiac journals and has multiple process/productpatents. The company keeps a highly customer-centric approach whiledistributing its innovative products & technologies through awell-entrenched direct sales network.
As part ofthe current transaction, a fund managed by Morgan Stanley Private Equity Asiahas invested INR 160cr in primary capital into the Company for a minoritystake. SMT’s existing institutional investor, Samara Capital also participatedin the round. KPMG India Private Limited served as an exclusive financialadvisor to SMT for the transaction.
The proceedsfrom the transaction will be used to finance SMT’s strong organic growth,achieve synergistic acquisitions and build an aggressive R&D program for afurther expansion of its portfolio of innovative lifesaving medical devices.
Speakingon the transaction, Bhargav Kotadia, Managing Director ofSMT, remarked, “Weare proud to partner with a pedigree investor like Morgan Stanley PrivateEquity Asia in our journey of becoming a global leader of cardiovasculardevices. The proceeds from this investment round will bolster further expansionin overseas markets and assist in building our pipeline of next generationcardiovascular products. As proud early champions of ‘Make in India’, we lookforward to making India a global powerhouse for critical medical devices in thenear future.”
ArjunSaigal, Co-head of Morgan Stanley Private Equity Asia in India, said, “Lifesciences & Healthcareis one of our core focus sectors in India. The increasing burden of lifestylediseases combined with the push towards local manufacturing backed by the bestin class R&D has led to a significant rise in the use of domestic medicalimplants. SMT’s high end technology and focus on R&D will make it a keybeneficiary of the rapid expansion in treatment volumes and medicalinfrastructure. We are excited to be partnering with SMT in its journeyforward.”
“SMT is aprofessionally run, technology driven company with products far superior to itspeers and is all set to make a mark at the global level as a leadingcardiovascular focused medical devices company from India. Samara’s investmentin late 2016 was a result of the high potential we saw in the sector andcapabilities within SMT to emerge as the market leader. The new up-round andfund raise validates our thesis and further strengthens the balance sheet ofthe company.” adds Abhishek Kabra, Director at Samara Capital.