Healthium (formerly Sutures India), owned by private equity fund Apax Partners, is aiming to raise Rs 1,500-2,000 crore through an initial public offering, valuing the company at about Rs 7,500 crore.
At least three investment banks including Credit Suisse, Nomura and ICICI Securities are likely to be hired for running the process, said two people aware of the matter.
Apax Partners holds 99.8 per cent of Healthium. The British private equity fund had acquired the stake in 2018 from TPG Growth, CX Partners and its founding shareholders for about Rs 1,950 crore. TPG Growth had owned around 73 per cent in Healthium, while CX Partners held 12 per cent. The rest was with the promoters.
An Apax Partners spokesperson declined to comment.
Sutures India was set up in 1992 in Bengaluru by LG Chandrasekhar and S Subramanium, former executives with Smith & Nephew and Johnson & Johnson.
Healthium currently has a presence in more than 70 countries. In India, it supplies to 18,000 hospitals and has 1,500 employees. The product portfolio includes surgical sutures, wound closure products including meshes, skin staplers, cardiac pacing wires, haemostats, as well as arthroscopy and endoscopy implants and ancillary devices. It competes with firms such as Smith & Nephew, Ethicon and ConvaTec.
Healthium expanded business with its first acquisition in 2009, when it took over Truskin Gloves which was renamed Healthium OEM in 2018. In 2013, Healthium established a joint venture with Mena Medical Manufacturing for expanding to the Gulf countries. In 2017, it acquired Quality Needles, a 100 per cent subsidiary of TPG Growth.
Healthium is the fourth largest suture manufacturer in the world and the second largest in the country with a market share of 17-18 per cent.
QNPL, which is a step-down subsidiary of the company, is the largest surgical needle manufacturer by volume across the globe. The market for surgical sutures is primarily dominated by Johnson & Johnson, through its Ethicon brand, which is the market leader in India as well with an about 55 per cent share.
Healthium operates through subsidiaries such as Sironix Medical Technologies BV, Mena Medical Manufacturing, Sironium Medical Technologies and Healthium OEM. It posted consolidated revenue of Rs 640 crore in FY20. The company and its subsidiaries have six manufacturing facilities in Bengaluru, Sharjah and Andhra Pradesh.
In FY2021, due to the Covid-19 pandemic, the group witnessed an increase in demand for a few product divisions like latex gloves and urology segment products, ratings firm ICRA said in a report last year, predicting that its revenue could benefit from this.
Healthium faces competition from international as well as domestic players in other product segments, which restricts its margins, ICRA had said.