A share purchase agreement was signed by Tube Investments of India Limited (‘TII’) and Premji Invest (through PI Opportunities Fund I Scheme II) to buy out India Medical Consumables Holdings Limited (a Samara Capital entity) and other shareholders in order to acquire the entire equity of Lotus Surgicals Private Limited (‘Lotus’). TII will purchase 67%, while Premji Invest will acquire the remaining 33%, provided that certain prerequisites are met. Lotus currently works in the industry of wound closure products.
To purchase equity shares from the current shareholders of Lotus, TII would invest up to Rs. 233 Cr. and Premji Invest will contribute up to Rs. 115 Cr.
The acquisition is the first stage in the formation of a Medtech Platform cooperation between TII and PI. The platform wants to grow. through both inorganic acquisitions and organic expansion. The platform is motivated by the idea of “Atmanirbhar Bharat” and intends to develop into a global platform for the creation, production, and distribution of cutting-edge medical items of the highest calibre at competitive prices.
The acquisition of Lotus symbolises our debut into the med-tech business, remarked Mr. M.A.M. Arunachalam (also known as Arun Murugappan), Executive Chairman of TII, in response to the development. The Indian medical sector is anticipated to grow at one of the fastest rates, driven by both demand- and supply-side factors. It gives us great pleasure to work with Premji Invest. Premji Invest’s extensive industry knowledge and investing experience, along with our in-depth expertise in setting up and operating large-scale manufacturing, will allow Lotus to access the enormous potential in the medical technology industry.
“TII has a remarkable track record of incubating and developing businesses across multiple sectors and producing stakeholder value through manufacturing and execution excellence,” said Mr. T. K. Kurien, Chief Investment Officer, Premji Invest. Via this med-tech platform, Premji Invest is happy to strengthen its relationship with TII. We think there is a great chance to build a worldwide platform that produces and sells top-notch medical items by utilising cutting-edge technologies in the market for medical consumables.
