TPG-backed Sutures India plans INR700 crore IPO in H1 2017

TPG-backed Sutures India plans INR700 crore IPO in H1 2017

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Sutures India IPO

Surgical products player Sutures India plans to launch its IPO in the first six months of 2017, said a report by Moneycontrol. The company, backed by private equity major TPG Growth, aims to raise anywhere between INR700 crore (INR7 billion) to INR800 crore through the upcoming IPO which is expected to be a combination of an offer for sale (OFS) by existing investors and fresh issuance of shares.

Apart from TPG, the company counts CX Partners and Kedaara Capital among its shareholders. TPG Growth owns 52% equity stake in the Bengaluru-based company while promoters’ shareholding is around 30%. CX Partners and Kedaara Capital hold the remaining equity stake. In a INR400 crore deal in July 2016, Kedaara Capital bought 13% stake from CX Partners, valuing Sutures India at nearly INR3,000 crore.

The company makes surgical and wound-closure products. Its product lineup includes absorbable as well as non absorbable sutures besides surgical meshes, surgical gloves, surgical paper tapes, two way Foley catheters. Its sutures are exported to over 91 countries in Europe, South America, Africa and Asia. At the same time, Sutures India is looking at strategic opportunities to expand in South East Asian countries to further expand its overseas operations.

Out of the three private investors, CX Partners has been active in India’s primary market and two of its portfolio companies – Ujjivan Financial Services and Thyrocare Technologies launched IPOs this year while security services firm SIS India is awaiting regulatory clearances from SEBI.

Red hot IPO market and strong IPO Pipeline

Following a strong performance this year, India’s IPO market is looking forward to continued strength during 2017, although the recent selloff has cooled off the sentiments. Nevertheless, the primary market saw 27 IPOs in 2016 which raised a total of INR27,112 crore. It is important to highlight that these figures include the IPO of Narayana Hrudayalaya which was launched in December 2015 but was listed in January 2016. Going forward, there are 14 companies with SEBI approvals and 6 awaiting regulatory clearances, indicating to a strong IPO pipeline next year. Once cleared by SEBI, IPO approvals are valid for one year.

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