Skanray Technologies Ltd IPO

Last Updated: 30 August 2022 5:10 PM by 5Paisa

Skanray technologies has filed its DRHP with SEBI, worth over Rs.400 crore. The IPO consists of a fresh issue worth Rs.400 crore and an offer for sale (OFS) of up to 14,106,347 equity shares. The book running lead managers to the issue are Motilal Oswal Investment Advisors Ltd, NOMURA Financial Advisory and Securities Pvt Ltd and ICICI Securities Ltd. The company is considering a pre-IPO placement of Rs.350 crores, which includes a fresh issue of Rs.150 crore and an OFS of Rs.200 crore. The company promoters are Vishwaprasad Alva, Agnus Capital LLP, Chayadeep Properties Pvt Ltd and Skanray Healthcare Partners LLP. 

Objectives of the issue:
1. Rs.130 crore is to be used for funding inorganic growth plans
2. Rs.70 crore is to be used to fund working capital requirements for Skanray Technologies
3. Rs.70 crore will be invested in the company’s subsidiaries
4. Rs.41.91 crore is to be used to fund the capital expenditure of the company’s

Skanray Technologies, incorporated in 2007, is one of the foremost players in the Indian medical device market. The company mainly focuses on the designing, development, manufacture and marketing of medical equipment. Skanray has a very diversified portfolio which is divided into three broad categories- radiology products, critical care products and respiratory management systems. The company has an efficient in-house R&D team that as of 31 December, 2020,  has been granted 49 trademarks, 27 patents and 11 design registrations. In FY20, Skanray’s sales spanned across 20 countries and 1,830 countries. As of 31 December 2020, the company has five manufacturing facilities. 2 are facilitated in India, 2 in Italy and 1 in Netherlands. These facilities have an aggregate installed manufacturing capacity of 54,200 units per annum. As of 31 December 2020, Skanray has been able to install 1,26,824 products in the country. The direct sales team consists of 60 personnel. In FY2020, the company engaged over 90 distributors for the operations in India.

In 2013, the company Skanray acquired Pricol Engineering Industries Ltd’s medtech business in order to gain access to their RMS product portfolio. Some other acquisitions include the acquisition of CEI-Italy- an X ray tube manufacturer from Itlay, in order to gain access to their wide presence in the European market and also in order to engage in vertical integration as X ray tubes are very important for radiology equipment, which is a category produced by the company. They also acquired Cardia International A/S, a manufacturer of AED which was again acquired in order to gain more access to the European market.