Stent maker SMT set for ₹2,000 crore IPO; draft filing next month, bankers on board

The IPO is being led by Motilal Oswal, Avendus, Nuvama and HSBC, and will see existing investors such as Samara Capital, Kotak, and Morgan Stanley offloading their stakes, one of the people cited above said.

“The issue will have only an offer-for-sale component and the draft papers are expected to be filed in July with a potential listing by the end of this year," the second person said. 

This means that the IPO will not raise any fresh capital for SMT and all proceeds from the share sale will go only to the selling shareholders.

While Avendus, HSBC and SMT declined to comment, others did not immediately respond to Mint’s requests.

The first attempt

This would mark SMT’s second attempt to go public after it shelved a 2021 IPO plan.

SMT, which holds a 25-30% market share in India’s drug-eluting stent segment, first filed for an IPO in September 2021 to raise around ₹1,500 crore, comprising both an OFS and a primary issue. The funds were earmarked for repaying debt and supporting the working capital needs of its foreign subsidiary, Vascular Innovations.

The IPO was later put on hold. Instead, SMT raised around ₹170 crore from Kotak’s Pre-IPO Opportunities Fund in 2023, which valued the company at approximately ₹3,000 crore.

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Financials and growth

Since then, SMT has posted notable growth. Its revenue grew to ₹909 crore in FY24 from ₹801 crore in the year before, although it slipped into a loss of ₹7.4 crore from a profit of ₹11.9 crore in FY23, according to data from Tracxn.

SMT was incorporated in 1998 by Dhirajlal Kotadia and family. It develops invasive cardiovascular devices such as coronary, structural heart and closure occluder products. The company has made several acquisitions including Imex SC, Zarek and Vascular Concepts Ltd, which expanded its distribution network and product portfolio.

The company recently reshuffled its leadership when it appointed Bhargav Kotadia, part of the founding family, as its chief executive office earlier this year, replacing Ganesh Sabat. Other appointments included Jose Calle Gordo as chairman, while Dhirajlal Kotadia will transition to chairman emeritus and continue to provide strategic guidance, according to a company statement in February.

As of July 2024, Samara Capital Markets Holding Ltd and NHPEA Sparks Holdings BV—a Morgan Stanley subsidiary—held 31.4% and 16.2% stakes in SMT, respectively, as per a Crisil report. Kotak’s pre-IPO fund held another 6%, while the rest was owned by promoters.

SMT competes with global players like Abbott, Medtronic and Meril, as well as domestic rivals such as Healthium Medtech and Translumina Therapeutics. 

Crisil noted SMT’s wide distribution, better collections and market presence but flagged concerns around its large working capital needs, R&D-linked volatility in margins, and regulatory exposure.

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Sector outlook

India’s cardiovascular device market, valued at $200 million in 2023, is expected to grow at a compounded annual growth rate (CAGR) of 14-15% over the next decade, Avendus said in a report. 

Regulatory price caps and broader inclusion of stent implants under government schemes have helped increase adoption. Domestic players’ market share has risen from 35% to 60%, as global companies adjusted to lower pricing while Indian firms leveraged cost-effective manufacturing.

Avendus also highlighted rising insurance coverage, affordability, and an expanding patient base as key growth drivers.

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