Morgan Stanley to divest 17% stake in Sahajanand Medical Technologies

Morgan Stanley Private Equity Asia is poised to divest its entire 17% stake in Sahajanand Medical Technologies (SMT), marking a significant shift in the ownership landscape of India’s leading cardiac stent manufacturer. This move comes five years after the American financial services giant first invested in the company, signaling a pivotal moment for the healthcare industry.

Stake sale dynamics
The sale, managed by Avendus, is not just limited to Morgan Stanley. Existing investor Samara Capital, along with the company’s founder Dhirajlal Kotadia and his family, are considering selling an approximately 15-20% stake. This collective decision underscores a strategic reevaluation of SMT’s ownership, potentially valuing the company at ₹3,500-4,000 crore. The sale process is anticipated to commence by the end of April, highlighting the stakeholders’ readiness to explore new growth avenues.

SMT’s market leadership
Founded in 2001 by Dhirajlal Kotadia, SMT has established itself as a frontrunner in the Indian drug-eluting stent market, commanding a 31% volume share. With a revenue of ₹850 crore in FY23 and an expected jump to ₹1,100 crore in FY24, SMT’s financial health is robust. The company’s strategic moves, including its 2022 filing for a ₹1,500 crore initial public offering (IPO) and expansion into structural heart products through acquisitions, have positioned it for sustained growth. SMT’s extensive distribution network and global market expansion efforts further reinforce its industry dominance.

Implications for the healthcare sector
The impending sale reflects the evolving dynamics within India’s healthcare sector, particularly in the high-stakes market of cardiac care. Morgan Stanley’s exit and the potential introduction of new stakeholders could catalyze further innovation and competition. As SMT looks to the future, its continued focus on affordability and accessibility of life-saving medical devices remains critical. This transition period might not only shape SMT’s trajectory but also influence broader trends in healthcare investments and technological advancements in cardiac care. BNN Breaking