The upcoming Sahajanand Medical Technologies Limited (SMT) IPO has generated significant buzz in the Indian financial markets. As a leading player in the cardiovascular devices sector, SMT has established itself with innovative solutions and a strong global presence. This article provides a detailed look into the company’s business, IPO details, financial performance, peer comparison, strengths, and associated risks.
Company Overview
Founded in 1999 as Sahajanand Vascular Technoventions, the company was later incorporated as Sahajanand Medical Technologies Private Limited in 2001. In 2021, it became a public limited company. Headquartered in Surat with a corporate office in Mumbai, SMT specializes in developing, manufacturing, and marketing cardiovascular devices such as drug-eluting stents (DES) and balloons. The company operates across multiple countries, including subsidiaries in Europe, USA, Brazil, and Asia.
Offer Document Summary
- The company is involved in the development of Class III and Class C/D medical devices, specializing in Vascular Intervention (VI) and Structural Heart (SH).
- The product portfolio includes coronary stents and coronary balloons, trans-catheter aortic valves and occluders, renal stents, peripheral drug-coated balloons, and other trading products.
- The global vascular devices market is segmented into Vascular Interventional Devices and Structural Heart Devices. In 2024, the market was valued at approximately $24.3 billion with a 6.2% CAGR over the last five years.
- The promoters of the company are Bhargav Dhirajlal Kotadia, Dhirajlal Vallabhbhai Kotadia, Priyanka Dhirajlal Cohen, and Shree Hari Trust.
IPO Details
The IPO consists of an Offer for Sale (OFS) of up to 27,644,231 equity shares of face value ₹1 each. Promoters and investors such as Shree Hari Trust, Samara Capital, Kotak Pre-IPO Opportunities Fund, and NHPEA Sparkle Holding B.V. are the selling shareholders. The shares will be listed on BSE and NSE. The price band and lot size will be announced closer to the IPO opening date. The IPO will follow the 100% book-built process.
Strength Factors
SMT enjoys several strengths that make it attractive to investors:
- Strong product portfolio in drug-eluting stents and balloons
- Global presence with subsidiaries across multiple geographies
- Robust R&D capabilities driving innovation
- Established distribution network in India and international markets
- Experienced management team with deep industry expertise
Key Performance Indicators
Some key performance metrics that highlight SMT’s business growth include:
- Increasing revenue base with consistent international sales contribution
- Healthy margins compared to several industry peers
- Expansion into newer geographies strengthening growth visibility
Financial Performance (FY23–FY25)
SMT has reported strong financial performance over the last three years (₹ in crore):
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) | EBITDA (₹ Cr) | EBITDA Margin (%) |
|---|---|---|---|---|---|
| FY23 | 730 | 110 | 15.1 | 210 | 28.8 |
| FY24 | 870 | 125 | 14.4 | 240 | 27.6 |
| FY25 | 1050 | 145 | 13.8 | 285 | 27.1 |
The company has demonstrated consistent growth in top-line and bottom-line performance with expanding margins.
Peer Comparison (Valuation)
When compared to listed peers in the cardiovascular devices and medical technology sector, SMT’s valuation is expected to be competitive. While the exact P/E ratio will depend on the IPO price, SMT’s growth prospects and margins position it favorably against domestic and international players.
Peer Comparison
Peers such as Lepu Medical, Medtronic, and Abbott Vascular operate in similar spaces. Compared to them, SMT has shown strong growth momentum in emerging markets, though scale-wise it remains smaller than global giants. Its India-focused strategy with global expansion provides a differentiated edge.
Contingent Liabilities
- This table, derived from the Restated Consolidated Financial Information, summarizes the company’s contingent liabilities as of March 31, 2025, in accordance with Ind AS 37.
- Contingent liabilities are potential obligations that may or may not become actual liabilities depending on the outcome of future events.
- The total contingent liability amounts to ₹292.65 million.
- The breakdown of these liabilities is primarily due to:
- Income Tax Matters: ₹259.64 million, the largest component.
- Goods and Services Tax (GST) Matters: ₹15.53 million.
- Custom Matters: ₹17.48 million.
- A key note provides specific details about the Income Tax matter, which stems from a search activity conducted by the Income Tax Department in June 2022. Assessments for assessment years 2015-16 through 2023-24 are complete, and the company has received a demand of ₹392.99 million, which it is contesting. The company has appealed to the Commissioner (Appeals), and the demand is expected to be reduced to ₹24.85 million.
Risk Factors
- High dependence on regulatory approvals across geographies
- Pricing pressure in domestic and international markets
- Competition from global MNCs with larger resources
- Risks associated with foreign exchange fluctuations
- Ongoing R&D expenses and product approval uncertainties
Main Highlights
- Offer for Sale of 27.64 million shares
- Strong growth in revenue and profitability FY23–FY25
- Expanding international footprint with multiple subsidiaries
- Leader in drug-eluting stents segment in India
- Focus on R&D-driven innovation
Conclusion
The Sahajanand Medical Technologies IPO offers investors a chance to participate in one of the leading Indian players in the cardiovascular devices industry. With a strong financial track record, expanding global presence, and robust R&D capabilities, SMT is well-positioned for sustained growth. However, investors should carefully consider the risk factors before investing. This IPO could be a promising opportunity for long-term growth-focused investors.
Frequently Asked Questions about Sahajanand Medical Technologies Limited
1. What is Sahajanand Medical Technologies Limited known for?
Sahajanand Medical Technologies Limited (SMT) is primarily known for manufacturing and marketing cardiovascular devices, particularly drug-eluting stents and balloons.
2. What is the size of the Sahajanand Medical Technologies IPO?
The IPO consists of an Offer for Sale of up to 27,644,231 shares by existing promoters and investors.
3. On which exchanges will SMT be listed?
The shares of Sahajanand Medical Technologies Limited will be listed on the BSE and NSE.
4. What is the financial performance trend of SMT?
SMT has shown strong financial performance with significant revenue and profit growth from FY23 to FY25. In FY25, the company’s revenue exceeded ₹1,000 crore.
5. What are the major risks for investors?
Major risks for investors include regulatory risks, pricing pressures, forex fluctuations, and intense competition from global medical device companies.