BackPortea may raise up to ₹1,000 cr via IPO
The Bengaluru-based company is likely to file the draft red herring prospectus with Sebi in May
PremiumMUMBAI : Portea Medical Pvt. Ltd, India’s largest home healthcare provider, plans to raise around ₹900-1,000 crore through an initial public offering, two people aware of the matter said.
Existing shareholders will sell shares worth ₹700 crore and the company will sell new shares of ₹200 crore, the people said on condition of anonymity.
Portea is likely to file the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in May, one of the people cited above said.
Emailed queries sent to an external spokesperson for the company seeking comment on Friday were not answered.
The Bengaluru-based company offers services, including mother and child care, nutrition and diet consultation, physiotherapy, nursing, lab tests, counselling, elder care for parents and critical care, according to its website.
The proceeds from the public offering will be used to expand its operations.
The company has a presence in cities such as Mumbai, Delhi, Ghaziabad, Bengaluru, Ludhiana, Jaipur, Guwahati, Ahmedabad, Vijayawada, Bhubaneshwar and Kochi.
Portea manages more than 120,000 patient visits each month and works with more than 50 hospital partners, 15 pharma companies, and leading insurance companies in India.
The company reported a loss of ₹48,093 as of 31 March 2021, according to documents from VCCEdge.
On the balance sheet, there are trade payables of ₹22 lakh and liabilities of ₹32 lakh. On the receivables side, the company has ₹4 lakh and some cash balances.
Commenting on the company’s financials, a veteran market expert said, “The company’s balance sheet is not in a great shape. The reserves and surplus are in negative. Share capital is minimal while the company is surviving on long-term borrowing of ₹2 crore".
“For the DRHP to be approved, the company will have to file financials for the current year. The unsecured loan is from Healthvista India Pvt. Ltd, its parent firm. Possibly, they are likely to convert their loan into equity. They owe money to MSMEs where they may face litigation, but the filing doesn’t show any litigation," he said.
The company also provides a collection of lab samples and offers medical equipment for sale or on hire, as well as patient assistance programmes for chronic disease management.
“Portea has built its own technology platform to help its providers adhere to standard operating procedures, access diagnostic tools, share information, and manage records for each patient," its website said.
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