How the listing went
Shares of Sahajanand Medical Technologies (SMT), one of India’s leading medical device companies, made a good start on the stock market on Friday, 23 October. The stock listed on the NSE at ₹371.15 against the issue price of ₹344, a listing premium of about 8%.
The real surge came after listing. Heavy institutional buying took the stock to an intraday high of ₹409.95, about 19% above the IPO price. At the listing price, the company’s market capitalisation was about ₹3,741 crore. For comparison, the valuation at the upper end of the IPO price band was about ₹3,497 crore. The stock closed at ₹377.65 on the NSE, roughly 9.8% above the issue price.
Invesco Mutual Fund’s big buy
The most talked-about news of the listing was Invesco Mutual Fund’s purchase. According to bulk deal data, the fund bought about 3.5% of SMT’s shares on the very first day of listing, a deal worth roughly ₹134.3 crore. A large institutional buyer taking such a position is often read as a sign of confidence in the company’s business. It is only a signal, however, not a guarantee.
IPO basics
SMT’s IPO was open from 15 to 19 October 2026. The price band was ₹327 to ₹344 per share and the total issue size was about ₹475.48 crore. One lot had 43 shares, so a retail investor had to put in at least ₹14,792 at the upper band. Allotment was finalised on 21 October and the shares listed on 23 October.
Anchor investors and subscription
Before the public issue opened, anchor investors put ₹140.06 crore into the company. These included mutual funds such as Nippon India Mutual Fund and DSP Mutual Fund, among others. The IPO was subscribed 34.70 times in the QIB category and 14.20 times overall, which shows strong demand from institutions.
Financials: a big jump in profit
The biggest reason behind the rally is considered to be the company’s improving financial performance:
- Profit: Net profit (PAT) rose about 175% from ₹25 crore in FY25 to ₹69 crore in FY26. Two years ago, in FY24, the company had a loss of ₹7.35 crore, so it has moved from loss to profit.
- Revenue: Total income grew 18% from ₹1,036 crore to ₹1,219 crore.
- EBITDA margin: Margin improved to 14.1%, helped by the direct sales model and better operational efficiency.
One thing to note here: profit has grown fast partly because the base was small. A profit of ₹69 crore is still modest against revenue of ₹1,219 crore.
Global reach: 74% of earnings from abroad
SMT was founded in 2001. The company makes high-risk Class III and Class C/D cardiovascular devices, a segment with high entry barriers.
About 74% of its revenue comes from Europe (including Germany, Spain and Poland) and other international markets, so it does not depend on any single country’s economy. It holds about 25% of India’s drug-eluting stent market by volume. Besides stents, the company is also growing in advanced segments such as TAVI (Transcatheter Aortic Valve Implantation) devices and drug-coated balloons.
What should investors do now? The general market view
- Short-term traders: Those who received an allotment and had a short-term view may consider booking profit on listing gains of 8 to 15%.
- Long-term investors: Analysts say the company can be held, or bought on dips, given the few direct listed competitors, growing healthcare awareness and global expansion.
Risks that should not be ignored
First, this IPO was entirely an Offer for Sale (OFS). The company received no fresh money. All proceeds went to the selling shareholders, Samara Capital and Morgan Stanley, so none of it will fund the company’s expansion.
Second, government (NPPA) price caps on medical devices can hurt the company’s margins. Stent prices have been under government control before.
Third, the first-day rally does not always hold. The intraday high and the closing price can differ, so do not treat day one’s high as the benchmark.
What to watch next
Over the coming days, investors should watch three things: whether the stock holds above the ₹371 listing price, whether institutional buying continues, and how fast profit grows in the company’s next quarterly results.(Source: company IPO documents and Bajaj Broking’s IPO report)
Disclaimer: This article is for information only and is not investment advice. Investing in the stock market involves risk, so consult your financial advisor before making any decision.
