Sahajanand Medical Technologies Limited IPO Is a 13.6% Stake Sale

Sahajanand Medical Technologies Limited’s IPO is a 13.60% stake sale, not a capital raise for the company. The offer consists of 13,822,116 existing equity shares, and Sahajanand Medical states that all offer proceeds, after sellers’ expenses and taxes, will go to the selling shareholders rather than the company.

Is Sahajanand Medical’s IPO raising money for the company?

No. Sahajanand Medical’s stated objects are to complete an offer for sale of 13,822,116 equity shares with a face value of Rs 1 each and to obtain the benefits of listing its equity shares on stock exchanges. The offered shares represent 13.60% of Sahajanand Medical’s pre-offer equity share capital.

Sahajanand Medical expressly states that it will not receive any proceeds from the offer. The selling shareholders will receive the offer proceeds after deduction of their respective portions of offer-related expenses and relevant taxes. The supplied offer document does not disclose the total offer value because the relevant amount remains a placeholder.

The structure matters because the disclosed transaction transfers existing shares from selling shareholders to public investors. Sahajanand Medical has not identified any use of offer proceeds for its own research and development, manufacturing, working capital, acquisitions or borrowings because it is not receiving the sale proceeds.

How large is the Sahajanand Medical IPO stake sale?

The Sahajanand Medical IPO stake sale comprises 13,822,116 equity shares, equal to 13.60% of pre-offer equity share capital. Each offered equity share has a face value of Rs 1, while the final offer price is to be determined through the book-building process.

The 13.60% measure is calculated against Sahajanand Medical’s equity share capital before the offer. Since the stated objects describe only an offer for sale, the supplied pages do not describe any additional equity shares being issued by Sahajanand Medical through this transaction.

The supplied pages also do not identify the number of shares offered by each selling shareholder, their individual proceeds or their post-offer holdings. They do state that none of Sahajanand Medical’s promoters, directors, key managerial personnel, senior management, promoter group members or group companies will receive offer proceeds unless they are selling shareholders of offered shares.

Where will the Sahajanand Medical IPO proceeds and costs go?

The Sahajanand Medical IPO proceeds will go to the selling shareholders after their respective offer expenses and taxes, while Sahajanand Medical receives no sale proceeds. The selling shareholders are also responsible for the fees and expenses of their respective legal counsel, including applicable taxes.

Most costs, charges, fees and expenses associated with the offer are to be shared among the selling shareholders in proportion to the number of equity shares sold by each shareholder. The listed categories include book running lead managers’ fees and commissions, brokerage, selling commissions, registrar fees, regulatory charges, legal fees and marketing expenses related to the offer.

Sahajanand Medical will initially advance offer costs and expenses, but the selling shareholders are required to reimburse their respective proportions on the date of allotment. If the offer is postponed, withdrawn, abandoned or not successfully completed, selling shareholders must reimburse the expenses advanced by Sahajanand Medical in proportion to the offered shares they held.

Sahajanand Medical will bear certain specified costs on its own, including listing fees, statutory-auditor fees not attributable to the offer and product or corporate advertising consistent with past practice. The estimated total offer expenses and all individual expense amounts remain placeholders in the supplied document, so no total monetary expense can yet be calculated.

What does listing provide when Sahajanand Medical receives no cash?

Sahajanand Medical expects listing to enhance its visibility and brand, provide liquidity to existing shareholders and create a public market for its equity shares in India. These are the company’s disclosed expected benefits, separate from receiving funds for corporate use.

The offer document links liquidity directly to existing shareholders because the offer consists of their shares. The 13,822,116 shares being sold represent 13.60% of pre-offer share capital, meaning the stated public-market liquidity objective is attached to a defined block of existing equity.

Sahajanand Medical reported revenue from operations of Rs 1,210.504 crore in fiscal 2026, compared with Rs 1,024.879 crore in fiscal 2025. Restated profit after tax was Rs 69.082 crore in fiscal 2026, compared with Rs 25.152 crore in fiscal 2025 and a restated loss after tax of Rs 7.354 crore in fiscal 2024.

Sahajanand Medical’s earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 170.655 crore in fiscal 2026, compared with Rs 128.021 crore in fiscal 2025. EBITDA margin increased to 14.10% in fiscal 2026 from 12.49% in fiscal 2025, while the supplied document does not say that any IPO funds will support those operating metrics after listing.

Why does Sahajanand Medical not need a monitoring agency?

Sahajanand Medical does not need to appoint a monitoring agency because the offer is entirely an offer for sale and the company receives no offer proceeds. Its offer document states that there are therefore no funds received by Sahajanand Medical whose utilisation requires monitoring.

The absence of a monitoring agency follows from the proceeds structure rather than the 13.60% stake-sale size. The document’s monitoring section states that Sahajanand Medical will not receive offer proceeds, so it is not required to appoint an agency for the offer.

This structure also means there is no company-level allocation among commonly disclosed uses of funds. The supplied pages contain no proceeds schedule for capacity expansion, debt repayment, working capital, acquisitions or research and development, because the sale consideration belongs to selling shareholders.

Sahajanand Medical reported net debt to EBITDA of 1.12 times in fiscal 2026, compared with 0.91 times in fiscal 2025 and 0.86 times in fiscal 2024. The company’s net working-capital days were 138 in fiscal 2026, down from 144 days in fiscal 2025 and fiscal 2024, but the offer document does not connect the IPO to financing either measure.

Conclusion

Sahajanand Medical’s proposed listing is a liquidity event for existing shareholders: 13,822,116 existing equity shares, or 13.60% of pre-offer equity capital, are being offered for sale. The company will not receive the proceeds, while selling shareholders receive the sale consideration after their allocated expenses and taxes and reimburse most offer costs according to shares sold.

The next disclosed updates to watch are the final price band, final offer price, total offer size and estimated offer expenses, all of which remained unfilled in the supplied document. Sahajanand Medical’s future reporting will also show whether fiscal 2026 revenue of Rs 1,210.504 crore and EBITDA margin of 14.10% continue without a fresh-equity funding inflow from this offer.