Portea Medical Gets SEBI Approval for INR 1000 Cr Initial Public Offering (IPO)
- ByStartupStory | April 12, 2023
Healthvista India, the parent company of Portea Medical, a healthtech startup, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The SEBI update last week confirmed the approval after Portea filed its draft papers with the market regulator in July 2022, along with an addendum to its draft red herring prospectus (DRHP) on March 10, 2023.
As part of its upcoming initial public offering (IPO), Portea Medical’s parent company, Healthvista India, has announced a fresh issue of equity shares worth INR 200 Cr and an offer for sale (OFS) of up to 56,252,654 shares worth INR 800 Cr. The IPO will see Portea Medical getting listed on both the BSE and NSE stock exchanges. The OFS will involve various stakeholders selling their shares, including Accel, Ventureast Life Fund III, MEMG CDC Ventures, Qualcomm Asia Pacific, and Sabre Partners Trust. Accel plans to sell up to 24,804,874 shares, while Ventureast Life Fund III, MEMG CDC Ventures, Qualcomm Asia Pacific, and Sabre Partners Trust will sell up to 4,278,680, 4,445,735, 4,256,924, and 3,984,752 equity shares respectively in the OFS.
The funds raised from the IPO by Healthvista India will be utilized for various purposes, including meeting the working capital requirements of its subsidiary, Medybiz Pharma, debt repayment, procurement of medical equipment, inorganic growth initiatives, marketing, and general corporate purposes. Portea Medical, founded in 2013 by Krishnan Ganesh and his wife Meena, offers a wide range of healthcare services, such as maternal care, physiotherapy, nursing, lab tests, counseling, critical care, and more.
In response to intervention by the Securities and Exchange Board of India (SEBI), Portea Medical recently reclassified its founders as promoters. This change came after SEBI objected to Portea’s original Draft Red Herring Prospectus (DRHP) which stated that the company did not have any identifiable promoter. SEBI has been urging companies to legally designate founders with more than 10% stake in the company as promoters, and this move by Portea is in line with that regulatory requirement.
The designation of a promoter entails various disclosure obligations during the IPO process and post-listing, including capital issues and disclosure requirements, compliance with substantial acquisition of shares and takeover regulations, adherence to insider trading regulations, and fulfillment of listing obligations. These requirements can potentially act as deterrents for startups considering an IPO, especially in a time when venture funding has decreased, and an IPO may be one of the limited options available for raising funds.
Portea Medical is currently operating in 16 cities in India and boasts a track record of serving over 500K patients and collaborating with more than 70 hospital partners, catering to approximately 3.4 million patients visiting its centers. However, as per data from Tofler, the healthtech startup reported a net standalone loss of INR 53.82 Cr in FY22, despite generating a revenue of INR 96.37 Cr from operations during the financial year.
Calling all entrepreneurs, investors and business owners! The wait is finally over. The 2nd edition of Startup Story B2B Connect is back with a bang – and this time, we’re taking it up a notch. With more startups, more investors and bigger opportunities than ever before, this is your chance to connect, collaborate and take your business to the next level. Get ready for an unforgettable networking experience that’s set to change the game. Stay tuned for all the exciting updates! Register Now Here.
Also Read
Follow Startup Story
Related Posts
