MUMBAI
:
Temasek, the private equity (PE) arm of the Singapore government, is the front runner to acquire significant minority stake in Tynor Orthotics, a Mohali, Punjab-based medical equipment maker, according to three people with knowledge of the development.
The manufacturer and exporter of orthopaedic and fracture aids, which is backed by consumer-focused PE firm Lighthouse Funds, is being valued at ₹3,000 crore, three people with knowledge of the development said.
“The final bids have come in and Temasek is the front runner,” the first person cited above said on condition of anonymity, adding that the other bidders who made it to the final round include global PE firms Warburg Pincus and Norwest Venture Partners.
The person further said that Temasek has bid for an up to 30-35% stake in the company for $100-120 million ( ₹850-900 crore).
The new funding is largely a secondary round with Lighthouse looking to sell its stake five years after it invested in the company. In 2018, Tynor had raised Rs 143 crore from Lighthouse Funds and Thuasne Participations, a French manufacturer of wearable medical devices.
“A small portion of the fund raise will go towards primary capital to fund the company’s expansion plans into newer geographies outside of India,” the second person cited above said, also requesting anonymity.
The company has been reportedly looking to invest ₹800 crore for its expansion into international markets.
Tynor, which competes with brands such as Flamingo and Visco, has a 30% market share in its category and is the fastest growing player, the third person cited above said, making it an ideal candidate for investment by PE funds.
“The category is likely to see steady growth in India as well as overseas. The funds are betting big on it,” the third person added.
A Temasek spokesperson declined to comment when contacted.
Emailed queries to the company’s founder Dr. Pushvinder Jit Singh, and spokespersons of Warburg Pincus, Temasek and Norwest Venture Partners remained unanswered till press time.
The company
Founded in 1993, Tynor had revenues of more than ₹500 crore in FY24, according to data from Tracxn, and sells to more than 60 countries.
It has a product portfolio of more than 150 items including body braces, supports, fracture and walking aids, traction kits, advanced knee braces, finger splints, silicone and foot care, and cervical aids, among others.
“The company plans to set up a new manufacturing plant to grow its mobility portfolio,” the third person cited above said. Today, the business is run by the second generation of the Singh family.
The medical equipment and devices industry in India is expected to grow at more than 10% over the next five to six years, various industry estimates show. The market, which is largely unorganized, is expected to be a $20-billion category by 2030, these estimates show.