The QIP was announced last month at a price of Rs 1850-1880/ share (about 11% discount to the then market price).
- QIP will result in a 5.54% equity dilution
- Rs 1000 cr will be utlised in the following manner –
- Rs 500 cr for organic growth. Capex will be completed by FY26.
- the medtech industry has a long gestation period, with a couple of years needed to set up a new plant and an additional year and a half for regulatory approvals and clinical trials.
- Rs 250 cr for acqsutions
- Rs 250 cr for general corporate purposes
- Rs 500 cr for organic growth. Capex will be completed by FY26.
The company is focusing on portfolio expansion and increasing its product range. “We operate in six core therapies: infusion therapy, vascular access, transfusion systems, cardiology, critical care, and renal diagnostics. In each core category, we plan to add two to three new products every year,” Himanshu Baid (the MD) said.
Some other key points to be noted –
- Polymed is also increasing investments in research and development to accelerate the introduction of new products.
- While 70 per cent of the company’s revenue came from exports in 2023-24, it plans to further extend its global reach.
- “We are looking to push further into the European market, which currently accounts for around 30 per cent of our export revenue. The next key markets will be the US and Latin America,” the MD said.
- The focus will remain on highly regulated core geographies.