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Investors of Skanray Technologies, a COVID star, are weighing majority stake sale

Serial pharma entrepreneur Arun Kumar and private equity fund Ascent Capital, which hold a lion’s share of the shareholding, are the key investors in medical equipment manufacturer Skanray Technologies

January 14, 2023 / 04:56 PM IST
In June 2021, Skanray filed draft papers for an IPO but the listing plans were later shelved. Representative image (Source: Pexels)

In June 2021, Skanray filed draft papers for an IPO but the listing plans were later shelved. Representative image (Source: Pexels)

Serial pharma entrepreneur and Strides group founder Arun Kumar and homegrown private equity firm Ascent Capital, the two key investors in Mysore-based medical devices maker Skanray Technologies, are evaluating options to sell a controlling stake in the firm and unlock value, multiple industry sources with knowledge of the matter told .

To be sure, the firm which was planning an IPO earlier, was at the epicenter of ventilator supply in India during the peak of COVID-19 and played a key role in the government’s war against the pandemic by ramping up production of ventilator machines in record time in collaboration with BEL ( Bharat Electronics Limited).

“Ascent Capital and entities associated with Arun Kumar including his venture capital and private equity fund Agnus have been invested for a while and are looking to clock healthy returns and are in exit mode. They have given a joint mandate recently to investment bank Rothschild and are open to exploring the sale of a combined stake of around 75-76 percent stake in Skanray Technologies,” said one of the persons cited above.

He added that the proposed deal is likely to be launched by Rothschild later in January and that a final call on the quantum of stake sold by both investors would depend on the level of interest from suitors.