IPO Synopsis
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
About Skanray Technologies Ltd
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.
Skanray Technologies Ltd Financial Status
|
Particulars (In Rs cr) |
Q3 ended 31 December, 2020 |
FY2020 |
FY2019 |
FY2018 |
|
Revenue |
350.5 |
153.10 |
166.92 |
141.99 |
|
PAT |
132.27 |
3.76 |
(29.41) |
(23.32) |
|
EPS |
45.75 |
1.34 |
(10.32) |
(8.98) |
In FY20, the revenue generated from sales in India and overseas are 57.97% and 42.03% respectively.
Distribution of revenue from operations by geography
|
Revenue |
Q3 ended 31 December, 2020 |
FY2020 |
FY2019 |
FY2018 |
|
International |
55.026 |
60.402 |
62.255 |
52.253 |
|
Domestic |
290.523 |
83.031 |
97.94 |
78.70 |
|
Other operating revenue |
1.38 |
2.175 |
2.317 |
0.962 |
|
Total Revenue from Operations |
346.93 |
145.608 |
162.513 |
131.92 |
|
Particulars (In Rs cr) |
Q3 ended 31 December, 2020 |
FY2020 |
FY2019 |
FY2018 |
|
Total Assets |
348.55 |
275.54 |
286.6 |
267.55 |
|
Total Borrowings |
66.48 |
130.44 |
153.99 |
116.40 |
|
Equity Share Capital |
18.29 |
18.92 |
18.92 |
18.92 |
Peer Comparison:
|
Company |
Own products as a % of total |
No. of patents |
|
Agappe Diagnostics Ltd |
75 |
1 |
|
Allengers Medical System Ltd |
100 |
- |
|
Ascent Meditech Ltd |
100 |
- |
|
BPL Medical Technologies Pvt Ltd |
4 |
4 |
|
Hindustan Syringes and Medical Devices Ltd |
100 |
2,029 |
|
Phillips India Ltd |
100 |
52 |
|
Poly Medicure Ltd |
1 |
114 |
|
Prognosys Medical Systems Pvt Ltd |
100 |
- |
|
Relisys Medical Devices Ltd |
100 |
4 |
|
Sahajanand Medical Technologies Pvt Ltd |
100 |
48 |
|
Siemens Healthcare Pvt Ltd |
0 |
4,917 |
|
Skanray Technologies Ltd |
100 |
14 |
|
Trivitron Healthcare Pvt Ltd |
40 |
1 |
Key Points for Skanray tech IPO -
IPO Key Points
-
Strengths
1. India is one of the fastest growing medical equipment and healthcare markets in the Asia- Pacific region. Also, due to the added advantage of the “Make in India” initiative, import substitutes are going to more in demand.
2. The company has a very well diversified portfolio which is categorized into three parts- critical care products (37.87% of the revenue generated), Radiology products (45.40% of the revenue) and respiratory management which accounts for 7.77% of the revenue generated.
3. The company has continued to make very significant investments in R&D and they are also reaping the benefits. As of 31 December 2020, the company had an R&D team of 135 personnel and have also submitted applications for 4 trademarks, 18 patents and 4 design registrations.
4. The company has a strong infrastructure and manufacturing capability given their 5 well-established manufacturing facilities and are one of the few Indian companies that provide end-to-end design. -
Risks
1.The company and the medical device market as a whole, is subject to many extensive regulations which may prove to be a hindrance in the sale or approval or new products.
2. The industry faces rapid technological changes and it might prove to be too rapid for the company to keep up with and this will lead to loss of market share.
3. The success of the company depends on the manufacturing and development of new medical devices and any failure to commercialize or develop new products will lead to adverse financial conditions.
4. Failure to maintain good relations with distributors will materially affect the company and the business operations.
5. The business of the top 10 customers who contribute to 60.06% of the revenue, are very essential to the company and the loss of these customers will prove to be devastating for the business.
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked