Cipla, Alkem Lead Race to Acquire Sahajanand Medical Technologies

The acquisition process comes after private equity firms such as TPG Capital, Apax Partners, and KKR withdrew their initial bids.

Cipla and Alkem Laboratories, two of India's leading pharmaceutical firms, are reportedly vying for the acquisition of a majority stake in Sahajanand Medical Technologies (SMT), India's largest manufacturer of cardiac stents.

The acquisition process comes after private equity firms such as TPG Capital, Apax Partners, and KKR withdrew their initial bids.

According to sources, binding proposals are expected by next Monday, with SMT’s valuation projected between INR 3,500 Cr and INR 4,000 Cr.

The Kotadia family, the promoters of SMT, plans to retain a minority stake after the transaction. "They could retain about 15-20% stake," as reported by The Economic Times.

Currently, Samara Capital and Morgan Stanley PE Asia hold 49% of SMT, while the Kotak Pre-IPO Opportunities Fund owns 6%. The Kotadia family controls the remaining 45%.

In the event that the desired valuation is not met through the stake sale, SMT is also considering plans for a domestic initial public offering (IPO).

The company had initially filed a draft prospectus in 2022 for an IPO worth INR 1,500 Cr, but the plans were later shelved.

Founded in 1993 by Dhirajlal Kotadia, SMT initially offered laser-based solutions to the diamond industry. Later, the company diversified into medical devices, including stents and other cardiovascular products.

SMT develops and manufactures minimally invasive coronary stent systems. Their product portfolio includes drug-eluting stents (DES), bare-metal stents, renal stents, PTCA balloon catheters, and other cardiac accessories. The company has a presence in more than 800 cath labs and hospitals across the country. It is also expanding its reach in Europe.

In July this year, Pharma giant Cipla announced the resignation of Samina Hamied from its Board of Directors.

Effective October 29, 2024, Hamied’s resignation follows her earlier exit from the company's executive role in January.

Her resignation letter, addressed to the Board, cites “personal and family commitments” as the reason for her departure.

Stay tuned for more such updates on Digital Health News.