Sahajanand Medical Technologies
IPO Size: Rs. 475 cr, entirely Offer for Sale (OFS)
- 66% OFS by 3 financial investors (51% combined stake to drop to 42%)
- 34% OFS by promoter (41% stake to shrink to 36% post IPO)
Price band: Rs. 327-344 per share
M cap: Rs. 3,497 cr (IPO is 13.6% of m cap)
IPO Date: Thu 15th Oct to Mon 19th Oct 2026, Listing Fri 23rd Oct 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Heart Stents and Valves Manufacturer
Sahajanand Medical Technologies is a 25-year-old Surat, Gujarat based manufacturer of medical devices for vascular and structural heart intervention, enjoying 25% volume market share in domestic drug eluting stents (DES) industry. It has two plants in India (Gujarat and Hyderabad) and 1 in Thailand, with stents capacity utilization 80%. India revenue has been flat, with exports to 65 countries, accounting for 75% of Rs. 1,200 cr topline, rising, mainly in Europe.
High Cost Structure
While company claims its products to be innovative (spending 9% on R&D annually), this is not reflected in margins, as operating EBITDA margin is just 14%. The employee cost + professional fees is 35% of topline, which is much larger than material cost of 24%, highlighting low product strength and huge expenses to be incurred on all heads – such as innovation (research, testing, clinical trials), manufacturing, sales and marketing. Thus, FY26 net margin was only 5%, with Rs. 69 cr PAT. During FY23 to FY25, the net margin was even lower, between -1% to 3%.
Capital Intensive Business
While fixed assets stand at Rs. 240 cr, due to the high export mix of 75%, working capital requirement is stretched at nearly 140 days, blocking capital and keeping RoE at just 10-11%. Also, net debt of Rs. 212 cr implies a net debt to EBITDA ratio of 1x.
Sub-par return for one of the Selling Investors
In March 2025 some investors did a secondary sale at Rs. 365 per share. But one of the selling shareholder, Kotak Fund, having invested in the company since Jan 2023, is part-exiting in the IPO at just 7.5% IRR over the past 3.5 years. A selling shareholder earning fixed income return on equity investment does not bode well, in front of incoming investors in the IPO.
