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Healthvista India Limited, the parent company of out-of-hospital healthcare startup Portea, has filed its draft red herring prospectus (DRHP) with India’s securities and exchanges board (SEBI) to raise around INR 1,000 Cr via an initial public offer (IPO).

The IPO comprises a fresh issue of equity shares worth INR 200 Cr and an offer for sale (OFS) of up to 56,252,644 shares worth INR 800 Cr.

Portea had converted into a public limited company in late May 2022 after a board meeting. The rumour mill had produced Portea IPO rumours in April this year when multiple media reports suggested that the healthtech startup might go for an IPO worth INR 1,000 Cr. The rumours have proved to be correct so far.

The healthtech startup plans to list its shares on the BSE and NSE post the IPO.

The OFS will see Accel sell up to 24,804,874 shares that it holds across Accel Growth III Holdings (Mauritius) Limited, Accel India III (Mauritius) Limited and Accel India V (Mauritius) Limited. Ventureast Life Fund III will sell up to 4,278,680 shares and MEMG CDC Ventures will sell up to 4,445,735 equity shares.

Qualcomm Asia Pacific will be selling up to 4,256,924 equity shares and Sabre Partners Trust will offload up to 3,984,752 equity shares in the OFS.

Healthvista India plans to use the incoming liquidity towards working capital requirements of its subsidiary, Medybiz Pharma, repayment of the debt, purchasing medical equipment, inorganic growth initiatives, marketing, and general corporate purposes.

The book-running managers for the issue are SBI Capital Markets, IIFL Securities and JM Financial.

Founded in 2013 by Krishnan Ganesh and his wife Meena, Portea offers healthcare services which include maternal care, physiotherapy, nursing, lab tests, counselling and critical care, among others. 

The startup is currently operational in 16 cities across India and claims to have served more than 500K patients and worked with more than 70 hospital partners with 3.4 Mn patients visiting its centres.

For the nine-month period ended December 2021, the Portea parent reported a total loss of INR 34.86 Cr. Portea made INR 119.1 Cr during the said period at an expense of INR 153.9 Cr. 

In FY21, Portea had recorded a loss of INR 37 Cr, therefore, in FY22 so far, it managed to narrow its losses. Its income in FY21 stood at INR 130.4 Cr, almost 10% higher than what Portea has managed in nine months in FY22. The healthtech startup’s expenses stood at INR 167.4 Cr in FY21, almost 8% more than expenses in FY22 so far.