Skanray may consider a pre-IPO placement of share of up to ₹350 crore, including a fresh issue of share of ₹150 crore and a share sale by existing shareholders of up to ₹200 crore
Medical devices manufacturer Skanray Technologies Ltd has filed its draft prospectus with the markets regulator for its initial public offering (IPO). The company is looking to raise ₹400 crore in fresh capital, as well as a secondary share sale, wherein its promoters and existing private equity investor Ascent Capital are expected to sell a part of their stakes.
The Mysuru-based firm, which was founded by Vishwaprasad Alwa in 2007, manufactures medical equipment, including patient monitoring systems, high-frequency X-ray devices, ventilators and critical care devices. It operates two US Food and Drug Administration-approved manufacturing facilities in Mysuru, and one in Bologna, Italy.
In December, Mint reported that the company had started work on its IPO. Investment banks Motilal Oswal, Nomura and ICICI Securities are advising the company on the IPO.
Skanray may consider a pre-IPO placement of share of up to ₹350 crore, including a fresh issue of share of ₹150 crore and a share sale by existing shareholders of up to ₹200 crore.
According to an October report by rating agency Icra, Skanray posted revenue of ₹88.8 crore in 5M FY21 (provisional figures), to grow 138.3% year-on-year, primarily on the back of a healthy demand across products. The increasing scale of operations has led to positive operating accruals with an operating margin of 30.6%, compared to 13% in 5M FY20, it added.
“The company posted a net profit of ₹85.4 crore in 5M FY21 (adjusted net profit of ₹15.2 crore, excluding the licensing income from Bharat Electronics Ltd). ICRA expects Skanray to post strong revenue growth and net profit in FY21 on the back of the healthy demand across its product segments, especially for ventilators,” the rating agency said.
The company posted operating income of ₹120.4 crore in FY20 and loss of ₹23.2 crore, according to ICRA.