Stent maker SMT to sell 30% stake to support clinical trials in US

Indian cardiac stent maker Sahajan and Medical Technologies (SMT) is planning to divest a 30% stake for Rs11bn ($145.8m).

The Economic Times has reported that the company’s promoters and investors Samara Capital and Morgan Stanley Private Equity Asia will sell the 30% stake together.

Samara Capital and Morgan Stanley Private Equity Asia will divest a portion of their 35% and 18% stake in the company.

The company’s promoter Dhirajlal Kotadia will also sell a part of his 47% stake in the company, the publication reported citing undisclosed sources.

The report suggests that SMT intends to use a part of the proceeds from the stake sale to support its clinical trials in the US.

The funding will also be used for building a $2.5m manufacturing plant in Hyderabad.

KPMG, which is in charge of the stake sale process, is reportedly in discussions with a number of global and Indian private equity funds.

SMT is expected to be valued at $300m.

SMT has signed a contract with the Italian Government for drug-eluting stents, following an open tender this week.

According to the agreement, the company, along with its partner Eukon, will supply 40,000 biodegradable polymer-coated Supraflex Cruz DES stents to the Italian Government by 2022.

The order is expected to strengthen the company’s presence in Europe.

Founded in 1998, SMT develops and manufactures cardiac products, including coronary stents (drug-eluting and bare-metal), renal stents, angioplasty balloon catheters and other cardiac accessories.