SMT raises equity capital in a funding led by Morgan Stanley Private Equity Asia

SMT has successfully raised equity to the tune of Rs.230 crore in a funding round led by Morgan Stanley Private Equity Asia.

Founded by Dhirajlal Kotadia in 2001, SMT became an early champion of the “Make in India” initiative by being one of the first companies in Asia to indigenously develop and manufacture coronary stents. Today, SMT is the largest developer, manufacturer and market leader of minimally invasive coronary stents (drug-eluting and bare metal), renal stents, PTCA balloon catheters and other cardiovascular accessories in India. Beyond India, SMT also exports its portfolio of life-saving devices to the UK, Spain, Italy, the Netherlands and over 60 other countries.

SMT operates a WHO-GMP-certified manufacturing plant in Gujarat and two world-class R&D centres, including one in Ireland. The company has a strong focus on R&D and has a number of pioneering achievements to its credit, including being the first company in the world to receive the CE certification for a drug-eluting stent with biodegradable polymer. Further, SMT has published several clinical studies in leading cardiac journals and has multiple process/product patents. The company keeps a highly customer-centric approach while distributing its innovative products and technologies through a well-entrenched direct sales network.

As part of the current transaction, a fund managed by Morgan Stanley Private Equity Asia has invested Rs.160 crore in primary capital in the company for a minority stake. SMT’s existing institutional investor, Samara Capital, has also participated in the round. KPMG India Private Limited served as an exclusive financial advisor to SMT for the transaction.

The proceeds from the transaction will be used to finance SMT’s strong organic growth, achieve synergistic acquisitions and build an aggressive R&D program for a further expansion of its portfolio of innovative life-saving medical devices.

Bhargav Kotadia, Managing Director, SMT, remarked, “We are proud to partner with a pedigree investor like Morgan Stanley Private Equity Asia in our journey of becoming a global leader of cardiovascular devices. The proceeds from this investment round will bolster further expansion in overseas markets and assist in building our pipeline of next-generation cardiovascular products. As proud early champions of ‘Make in India’, we look forward to making India a global powerhouse for critical medical devices in the near future.”

Arjun Saigal, Co-Head of Morgan Stanley Private Equity Asia in India, said, “Lifesciences and Healthcare is one of our core focus sectors in India. The increasing burden of lifestyle diseases combined with the push towards local manufacturing backed by the best-in-class R&D has led to a significant rise in the use of domestic medical implants. SMT’s high-end technology and focus on R&D will make it a key beneficiary of the rapid expansion in treatment volumes and medical infrastructure. We are excited to be partnering with SMT in its journey forward.”