Medical equipment manufacturer Skanray Technologies filed its preliminary papers for an initial public offering (IPO) with SEBI.
Let’s take a look at its plan of action.
Skanray decides to go public
Per its draft red herring prospectus, Skanray Technologies IPO comprises new share issuance of up to Rs. 400 crores. Additionally, the IPO includes an Offer-for-Sale aggregating up to 14,106,347 equity shares by current shareholders and promoters.
The company may also count in a pre-IPO placement of shares worth Rs. 350 crores. This involves a share sale by existing stakeholders of about Rs. 200 crores, alongside another fresh issue of shares.
The company intends to utilise the Skanray Technologies IPO proceeds to:
- Fund inorganic growth
- Invest in subsidiaries
- Meet its working capital requirements
Is Skanray Technologies worth the hype?
Skanray Technologies is a Mysuru-based business founded in 2007 by Vishwaprasad Alwa. It is a leading medical device maker that engages in the design, development, manufacture, and marketing of medical equipment.
Its diverse product portfolio comprises cardiology devices, ventilators, patient monitoring systems, respiratory management systems, and high-frequency X-ray and critical care devices. The company retails its products globally for personal medical use or in hospitals.
Key highlights on Skanray
- Skanray Technologies has a global presence in the field of critical healthcare and diagnostic medicine.
- A multi-product business, it offers an assortment of high-end medical equipment.
- The company holds over 80 patents, and 50 CE/FDA certified devices.
- In 2020, it supplied 30,000 self-designed CV200 advanced ICU ventilators and supported India’s battle against Covid-19.
Additionally, Skanray operates 2 manufacturing facilities, one in Mysuru, India and the other in Bologna, Italy. Both of these facilities are approved by the US Food and Drug Administration (FDA).
Skanray Technologies’ financial nitty-gritty
Here’s a rundown on its finances:
- According to a report by ICRA Limited, this company posted an operating income of Rs. 120.4 crores and a loss of Rs. 23.2 crores in FY 2020. However, Skanray Technologies’ revenue stood at Rs. 88.8 crores in 5M FY21 (provisional figure).
- An increasing scale of operations has paved the way for positive operating accruals resulting in an operating margin of 30.6%, compared to a mere 13% in 5M FY2020.
- Skanray Technologies also realised a net profit worth Rs. 85.4 crores in FY 2021.
- It also indicated a year-on-year growth of 138.3%, with a steady and pandemic-induced demand across its products.
But will Skanray continue to stay ahead of the game?
ICRA expects the company to post a strong revenue growth and net profit in this financial year. The agency envisions this growth backed by healthy demand for products across segments, particularly for ventilators.
How can I subscribe to Skanray Technologies IPO?
You can subscribe via –
- Angel One; if a new customer, you can open a Demat account and then subscribe
- Fill up and submit the relevant BSE or NSE form
- Avail the ASBA facility against current or savings account
Summing up on Skanray Technologies IPO
Skanray Technologies has filed a DRHP to raise funds for a sum of Rs. 400 crores. The company plans to employ the funds generated from Skanray Technologies IPO towards meeting its working capital requirements and funding growth opportunities.
In addition, it may also undertake a secondary share-sale, wherein its existing stakeholders will sell a part of their stake in the company.
Frequently Asked Questions
- When did Skanray Technologies file papers for IPO?
27 June 2021.
- What is the face value of Skanray Technologies shares?
The face value of Skanray shares will be Rs.10 per share.
- Where are the shares of Skanray Technologies listed?
BSE and NSE.