Healthium Medtech, a global medtech company has filed its Draft Red Herring Prospectus (DRHP), with capital markets regulator Sebi to raise funds via an initial public offering.

The public issue comprises a fresh issue of Rs 390 crores and an offer for sale of 3.91 crore equity shares by selling shareholders. Promoter Quinag Acquisition (FDI) will offload up to 3.9 crore equity shares and other selling shareholder Mahadevan Narayanamoni will sell up to 1 lakh equity shares through the offer for sale.

The funds raised from the fresh issue are proposed to be utilised for repaying debts (Rs 50.09 crore); investment in subsidiaries Sironix Medical Technologies BV, Clinisupplies and Quality Needles (Rs 179.45 crore); acquisitions and other strategic initiatives (Rs 58 crore); and general corporate purposes.

Quinag Acquisition acquired Healthium Medtech in June 2018 from selling shareholders including TPG Growth, AAJV Investment Trust, Menu and others.

As of FY21, it is the largest independent medical device company and the second-largest company overall, in the surgical consumables market in India with a 7.91 per cent share based on value.

It is also the largest non-captive surgical needles manufacturer, with a 22.30 percent share in overall volume sales globally, and a 45.41 percent share of the non-captive market.

The company in its Sebi filing said it has gained market share across its markets and focus areas between fiscals 2019 and 2021, while improving profitability over this period.

Its revenue from operations grew at a CAGR of 10.52 percent between FY19 and FY21. It increased revenue from operations and EBITDA (earnings before interest, tax, depreciation and amortisation) by 11.61 percent and 61.06 percent during FY20 and FY21, despite the negative effects of the Covid-19 pandemic on the overall economy, and particularly on surgical volumes.

Profit after tax of the company grew significantly to Rs 85.43 crore in the financial year 2020-21, from Rs 36.76 crore in FY20 and Rs 13.73 crore in FY19.

ICICI Securities, CLSA India, Credit Suisse Securities (India), and Nomura Financial Advisory and Securities (India) are appointed as the book running lead managers to the issue.