Medical device firm Skanray Technologies files Rs 400-crore IPO

Medical device manufacturing company Skanray Technologies has filed its draft prospectus with the mаrkets regulator for its initial public offering (IРО). The соmраny is lооking tо raise Rs 400 сrоre in fresh сарitаl, offer-fоr-sаle оf up tо 14,106,347 equity shares by promoters аnd existing shareholders, ассоrding tо the draft red herring prospectus.

Skanray may also соnsider а рre-IРО рlасement оf shares worth Rs 350 сrоre, including а fresh issue worth Rs 150 сrоre, apart from a sale by existing shareholders оf up tо Rs 200 сrоre as per the preliminary filed papers.

Diversified portfolio

Skanray Technologies is amongst the big players engaged in designing, developing, manufacturing, and marketing medical devices. The company has a diversified portfolio including patient monitoring systems, cardiology devices, and OEMs for personal and retail sales.

In 2020, Skanray sold its products and services to over 1,830 customers in 20 countries. The company has extensive in-house research and development, that has been granted 27 patents, 49 trademarks, and 11 design registrations.

Interestingly, the company acquired the medical equipment business of L&T, Pricol Engineering Industries Limited, CEI-Italy (Italian X-ray tube manufacturer), and Cardia International (manufacturer of AED), which has helped it expand not only in India but globally.

The Mysuru-based company has its products in three major categories: critical care products, radiology products, and respiratory management systems. Almost all the products from these categories have received several certifications from the US FDA, CE, and certain processes are ISO certified.

In the fiscal year 2020, revenue generated from operations, both within India and abroad, amounted to Rs 844.06 million and Rs 612.02 million respectively, while revenue from OEMs amounted to Rs 310.72 million.

Meanwhile, Skanray’s operations are exposed to increasing regulatory scrutiny, which imposes significant compliance costs and exposes them to government investigations and legal actions. These investigations carry the risk of significant civil and criminal penalties, which can debar the company from participation in government programs.

At the end of the day, the market for medical equipment is huge and therefore offers plenty of upsides to grow from a firm like Skanray.