KKR, TPG eye Relisys Medical Devices in early-stage buyout talks

Mint

2 days ago

MUMBAI
:
Relisys Medical Devices is in early-stage discussions with global private equity firms KKR and TPG for a potential ₹1,200–1,300 crore investment, with the transaction likely to offer a full or partial exit to existing investor Siguler Guff, two people familiar with the matter told Mint.
'While TPG is evaluating the company to strengthen its portfolio, KKR is in discussions with the medical devices maker to build out its med-tech platform under which it acquired Healthium Medtech last year from Apax Funds," one of the people cited above said. TPG, too, may look at developing a med-tech platform of its own, the person added.
A majority of the proceeds from the transaction, if it materialises, will likely be secondary in nature, enabling Siguler Guff to partially or fully exit. A smaller primary infusion may also be included to fund Relisys's expansion plans, said the second person. Both private equity firms are expected to seek a controlling stake in the Hyderabad-based medical devices maker.
In secondary deals, existing shareholders sell their stakes to other investors and the company doesn't receive any new capital. Such shares are usually traded at a discount to primary equity.
While KKR declined to comment, TPG, Siguler Guff, Healthium, and Relisys did not respond to Mint's mails sent on Sunday.
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In February, VCCircle had reported that o3 Capital, a mid-market investment bank, was advising Relisys in its search for potential buyers. The report also noted that existing investor Siguler Guff was exploring a full or partial exit, alongside the company's founders, in a transaction then estimated to be valued at $50–70 million ( ₹435–610 crore).
Company background
Founded in 1997 by technocrats and clinicians, Relisys Medical Devices manufactures cardiovascular products like drug-eluting stents, balloon catheters, diagnostic catheters, and transcatheter heart valves. It also acquired Multimedics in 2018 to expand its stent-making capabilities globally.
In FY24, the company reported revenue of ₹169.4 crore, up slightly from ₹162.7 crore a year earlier. Net profit rose marginally to ₹36.3 crore, according to data from Tracxn.
The bustling deal activity in the sector also underscores the growing investor appetite for med-tech companies in India. Some notable transactions include Meril Life Sciences $210 million funding from Warburg Pincus which also invested about $300 million in Appasamy Associates. SMT raised $150 million from Samara Capital while Translumina raised around $90 million from Everstone Capital.
Also read: Health ministry to set up a panel to review medical device-related adverse events
Sector outlook
India's $12 billion med-tech market is projected to hit $50 billion by 2030, according to EY. Despite $3.8 billion in exports last fiscal, the country is still heavily import-dependent, with imports at $8.2 billion, making up 80–85% of domestic consumption.
Growth is expected to be driven by rising income levels, wider insurance coverage, medical tourism, and rapid healthcare infrastructure expansion in Tier 2 and 3 cities. EY noted that global MNCs are increasingly choosing India for R&D, manufacturing, and global capability centers (GCCs)—further strengthening the ecosystem.
Also read: India eyes global pharma dominance with a ₹5,000 crore revitalisation plan