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Mysore-based Skanray Technologies, a medical devices company, is set to raise Rs 70 crore, its first growth capital infusion, sources said. The company, which recently acquired L&T’s medical equipment business that was much higher than its own revenues, indicated it would deploy the fresh resources to acquire key targets in Europe and to set up a design lab there.
Arun Kumar, the promoter of Strides Arcolab and a significant investor in Skanray, is personally spearheading the fund raise, according to sources. They added Skanray is in the final stages of negotiations with Ascent Capital, which manages $600 million across three funds. Skanray’s Managing Director Vishwaprasad Alva, who is also one of the key promoters of the company, confirmed to Business Standard the firm is talking to various private equity firms to raise funds. While investment bankers in the know confirmed that the transaction with Ascent Capital is in the final stages of being signed, Alva declined to comment on Ascent’s interest in Skanray.
“We are still debating whether we should go with PE funds or raise resources on our own to fuel our expansion plans. We should be finalising that call pretty soon,” said Alva.
Currently, Skanray Technologies has presence in diagnostic imaging products and primary healthcare devices. Its products range include high-frequency x-ray generators, x-ray imaging systems, critical care devices and industrial x-ray imaging.
Alva said the company is looking at key targets in Europe, as well as other global organisations, to form alliances to design and manufacture echo colour doppler ultrasound, critical- care devices, total hospital solutions like telemedicine and software, mobile hospitals and ICU turnkey projects. The firm manufactures its products at Mysore and is looking to set up units in Brazil and West Asia. It is looking to clock a turnover of Rs 300 crore by FY15 from the current top line of around Rs 100 crore.
Kumar had earlier invested close to Rs 25 crore in Skanray and is understood to have committed to fund more, as and when required. Kumar, who over the years built Strides Arcolab into an established pharmaceutical company, recently announced that Strides Arcolab will sell its speciality business to global pharmaceutical major Mylan for $1.8 billion. According to sources, the deal is in the final stages of closure.
