Apax-owned Healthium Medtech files for India IPO
Apax Partners-owned Helthium Medtech, an India-based medical devices manufacturer formerly known as Sutures India, has filed for a domestic IPO.
The company plans to sell up to INR3.9 billion ($53 million) in new shares, while existing investors will offload up to 39.1 million shares, according to a prospectus. The secondary portion includes 39 million shares held by Apax. The private equity firm currently owns 97.6 million shares, or 99.79% of Healthium.
Apax acquired control of the company in 2018 for a reported $350 million, committing capital from its second global buyout fund, which closed at $9 billion in 2016. Its arrival facilitated exits for TPG Capital and CX Partners. TPG held a 73% stake through its global growth strategy, while CX had 12%.
Founded in 2012, Healthium manufactures and sells a range of medical devices and consumables, specializing in advanced surgery, urology, arthroscopy, and wound care. As of March, one in five surgeries conducted globally featured a Healthium product.
The company is the largest independent medical device manufacturer in India and the second largest in the surgical consumables market with a 7.91% share. It also ranks number one globally among non-captive surgical needles manufacturers and number three in the UK for urology collection devices.
Within India, Healthium has a sales force of 350 covering 40,000 surgeons across 18,000 hospitals, or just over half of the national total. In addition, there are 27 salespeople, plus 13 nurses, based in the UK, where hospital access comes through contracts with the National Health Service. The company exports to 80 countries, including the UK, primarily selling under its own brand.
Public expenditure on healthcare as a portion of overall expenditure is much lower in India than in markets like China. Government efforts to improve access to affordable care have been accelerated by COVID-19, with a commitment to build better healthcare infrastructure and invest $5.13 billion in promoting domestic manufacturing. Healthium expects to benefit from these tailwinds.
The company generated INR7.27 billion in revenue and other income for the 12 months ended March 2021, up from INR6.52 billion a year earlier. Over the same period, net profit rose from INR292.3 million to INR845.4 million.
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