Skanray Technologies is on the go to generate funds through an initial share sale. The public offer of this company consists of a fresh issuance of equity shares amounting to Rs. 400 crores and an offer for sale aggregating to 14,106,347 equity shares.
The company’s existing shareholders and promoters will take part in the OFS, according to the DRHP.
Here are more details about this upcoming IPO.
Skanray Technologies IPO – A Closer Look
Earlier in June 2021, Skanray Technologies filed its draft red herring prospectus with SEBI. According to the DRHP, the company plans to utilise the net proceeds from this IPO for these purposes:
- Financing inorganic growth
- Funding working capital requirements of the company
- Investing in subsidiaries
- Financing the requirements of capital expenditure
- General corporate purposes
In addition, Skanray Technologies is also in the talks regarding a pre-IPO placement of shares worth Rs. 350 crores. This will include a fresh issuance of Rs. 150 crores and an OFS by specific shareholders, amounting to Rs. 200 crores.
Through its IPO, this leading medical device manufacturer seeks to brush up its technological capabilities and dilate its operations via acquisitions.
It aims for takeover targets that have experience in in-vitro diagnostic (IVD), ultrasound, home health technologies, and more.
Skanray Technologies believes that these acquisitions will:
- Empower it to diversify its product portfolio
- Enhance the company’s current usage of existing products
- Extend modern remote connectivity to monitor remote patients
- Equip cross-pollination of modules in acquired and existing products
One of Skanray Technologies’ well-known product-driven acquisitions is the takeover of the medical equipment business of Larsen and Toubro Ltd. The company did this takeover to enhance its ESU and PMS portfolio.
About Skanray Technologies
Skanray Technologies is a major player in India’s medical device market. The company engages in developing, manufacturing, designing and marketing medical devices. It features a diversified product portfolio spread over different categories, including:
- Radiology products
- Products of critical care
- Respiratory management system
The company is based on its own intellectual property and carries out in-house product manufacturing. As of 2020, it had a total of 5 manufacturing units spread across India, the Netherlands and Italy.
Skanray Technologies also features joint ownership with a testing facility in Mysore, including the state government and different entities.
Here is a summary of Skanray Technologies financials that will help investors make an informed decision regarding its IPO:
|Total Assets (in Millions)||Total Revenue (in Millions)||Profit After Tax (in Millions)|
|March 2018||Rs. 2,675.55||Rs. 1,419.90||Rs. 233.23|
|March 2019||Rs. 2,866.01||Rs. 1,669.22||Rs. 294.19|
|March 2020||Rs. 2,755.41||Rs. 1,531.02||Rs. 37.61|
Undoubtedly, Skanray Technologies is a key player in the Indian medical device market. The company poses strong manufacturing capabilities backed by an extensively developed distribution network. Besides, it is also planning to enhance its customer base by expanding its services to Europe, the U.S., and other growing markets.
Frequently Asked Questions
- What is the face value of Skanray Technologies IPO?
The face value of this IPO is Rs. 10 per equity share.
- When was Skanray Technologies established?
Skanray Technologies was set up in 2007.
- What is Skanray Technologies’ combined production capacity?
The company features a combined production capacity of 54,200 units per annum.