Healthvista India (Portea) IPO
Healthvista India Limited is the leading out-of-hospital healthcare provider in India, based on revenue and the highest market share of 21% of the organized out-of-hospital healthcare market in Fiscal 2021, as well as in terms of the number of cities covered as of December 31, 2021. Under the well-established brand Portea, the company provides a comprehensive range of out-of-hospital healthcare services, including primary care, geriatric (elderly) and palliative (end-of-life) care, intensive care unit (“ICU”) care, post-operative and post-hospitalization care, mother and baby care, chronic care, and cancer care, all at home. The company also distributes specialty pharmaceuticals and provides “point of care” medical equipment for sale and rental. As of March 31, 2022, the company had established 40 offices across India.
Healthvista India (Portea) IPO Business Segments:
Healthcare services: Healthvista India Limited offers a range of medical care services, which are as follows:
- Primary care: It includes teleconsultations and home visits by doctors, home-based diagnostics, physiotherapy, and short-term nursing procedures such as injections, infusions, wound care and dressing, suture removal, and vaccinations conducted at home.
- Geriatric / elderly care: It includes long-term supportive and curative solutions for the elderly, and includes nursing aides, physiotherapy, and other services for assisted living, as well as the necessary medical equipment for treatment and remote monitoring through third-party monitoring systems, such as wearables.
- Post-operative / post-hospitalization care: It includes out-of-hospital care for both critical and non-critical illnesses, following a patient’s discharge from the hospital. The company provides a range of post-operation needs, including home-based ICU, nursing care, infusion services, physiotherapy at home, and aides for recovery and rehabilitation, as well as the medical equipment necessary for such setups.
- Chronic care: The Company provides remote real-time monitoring through third-party monitoring systems and tele-support for chronic diseases such as diabetes, hypertension, and chronic respiratory disorders. It also provides support for oncological care and other complex disorders at home and provides specialty pharmaceuticals and set-up medical equipment such as bi-level positive airway pressure (BiPAP) and continuous positive airway pressure (CPAP) machines.
- Mother and baby care: the company offers lactation support, and support for baby care for the first few months such as bathing, and massage services, as well as wellness requirements of the mothers such as physiotherapy
- Specialty pharmaceuticals: the company is a preferred partner for various multinational companies and large domestic pharmaceutical companies to distribute and administer their patented and newly-launched drugs that are not distributed to general pharmacies and hospitals for various reasons, including high costs, specialized storage/distribution requirements, specific treatment protocols.
- Sales and rental of medical equipment: The Company provides “point of care” medical equipment for sale as well as rental. It purchases such medical equipment directly from the supplier, including respiratory equipment such as oxygen concentrators, ventilators, ICU beds, air mattresses, nebulizers, patient monitoring devices, and various consumables.
Healthvista India (Portea) IPO Revenue from Operations:
| Segment | 9M FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % | FY-19(in cr.) | % | CAGR |
| Healthcare services | 66.61 | 58.64% | 75.62 | 59.26% | 82.55 | 54.83% | 86.23 | 59.81% | -4.3% |
| Specialty pharmaceuticals | 21.57 | 18.99% | 29.18 | 22.87% | 47.84 | 31.77% | 36.30 | 25.18% | -7.0% |
| Sale of medical equipment | 17.07 | 15.03% | 15.29 | 11.98% | 13.50 | 8.97% | 17.29 | 11.99% | -4.0% |
| Rental of medical equipment | 8.34 | 7.34% | 7.51 | 5.88% | 6.66 | 4.42% | 4.36 | 3.03% | 19.8% |
| Total | 113.60 | 100.00% | 127.60 | 100.00% | 150.55 | 100.00% | 144.18 | 100.00% | -4.0% |
Healthvista India (Portea) IPO Details:
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹1 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | Not Available |
| Fresh Issue | [●] shares
(aggregating up to ₹200 Cr) |
| Offer for Sale | 56,252,654 shares
(aggregating up to ₹ [●] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 75% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 10% of the Offer |
Healthvista India (Portea) IPO Financial analysis:
| Particulars | 9M FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | FY-19(in cr.) | CAGR |
| Revenue from sale | 113.60 | 127.60 | 150.55 | 144.18 | -4.0% |
| Other Income | 5.51 | 2.79 | 11.51 | 5.30 | |
| Operational Cost | 34.10 | 37.97 | 53.42 | 50.94 | |
| Employee Cost | 33.74 | 38.82 | 61.69 | 72.17 | |
| Other expenses | 53.61 | 67.36 | 88.03 | 93.80 | |
| EBITDA | -2.34 | -13.77 | -41.09 | -67.43 | |
| EBITDA margin% | -2.06% | -10.79% | -27.29% | -46.77% | |
| Depreciation | 2.83 | 4.25 | 3.11 | 2.77 | |
| Interest | 29.69 | 19.00 | 3.73 | 1.48 | |
| PBT | -34.86 | -37.02 | -47.92 | -71.68 | |
| Total tax | 0.00 | 0.00 | 0.09 | 0.08 | |
| PAT | -34.86 | -37.02 | -48.01 | -71.76 | |
| PAT margin% | -30.69% | -29.01% | -31.89% | -49.77% |
Pre-Offer shareholding of the Selling Shareholders:
| S. No. | Name of the Selling Shareholder | No. of Equity Shares
held |
Percentage of the pre-Offer paid
Up equity share capital (%) |
| 1. | Accel Growth III Holding (Mauritius) Limited | 32,622,200 | 14.92% |
| 2. | Accel India III (Mauritius) Limited | 22,985,700 | 10.51% |
| 3. | MEMG CDC Ventures | 12,015,500 | 5.49% |
| 4. | Ventureast Life Fund III LLC | 11,564,000 | 5.29% |
| 5. | Qualcomm Asia Pacific Pte Ltd | 11,505,200 | 5.26% |
| 6. | Accel India V (Mauritius) Limited | 11,432,300 | 5.23% |
| 7. | Sabre Partners Trust | 10,769,600 | 4.92% |
| 8. | SAMA Family Trust | 10,742,200 | 4.91% |
| 9. | International Finance Corporation | 10,511,200 | 4.81% |
| 10. | Ventureast Trustee Company Private Limited | 7,099,900 | 3.25% |
| 11. | Aneja Schmidt & Co. LLC | 4,707,300 | 2.15% |
| 12. | Cyperales VL, LLC | 4,707,300 | 2.15% |
| 13. | Medi Assist Healthcare Services Limited | 1,371,800 | 0.63% |
| Total | 152,034,200 | 74.94% |
Healthvista India (Portea) IPO Offer for Sale Details:
| S. No. | Name of the Selling Shareholder | Number of Equity Shares
being offered in the Offer for Sale (Up to) |
| 1. | Accel Growth III Holding (Mauritius) Limited | Up to 12,070,214 Equity Shares |
| 2. | Accel India III (Mauritius) Limited | Up to 8,504,709 Equity Shares |
| 3. | MEMG CDC Ventures | Up to 4,445,735 Equity Shares |
| 4. | Ventureast Life Fund III LLC | Up to 4,278,680 Equity Shares |
| 5. | Qualcomm Asia Pacific Pte Ltd | Up to 4,256,924 Equity Shares |
| 6. | Accel India V (Mauritius) Limited | Up to 4,229,951 Equity Shares |
| 7. | Sabre Partners Trust | Up to 3,984,752 Equity Shares |
| 8. | SAMA Family Trust | Up to 3,974,614 Equity Shares |
| 9. | International Finance Corporation | Up to 3,889,144 Equity Shares |
| 10. | Ventureast Trustee Company Private Limited | Up to 2,626,963 Equity Shares |
| 11. | Aneja Schmidt & Co. LLC | Up to 1,741,701 Equity Shares |
| 12. | Cyperales VL, LLC | Up to 1,741,701 Equity Shares |
| 13. | Medi Assist Healthcare Services Limited | Up to 507,566 Equity Shares |
Healthvista India (Portea) IPO Strengths:
- Healthvista India Limited is the leading out-of-hospital healthcare provider in India, based on revenue and highest market share of 21% of the organized out-of-hospital healthcare market in Fiscal 2021, as well as in terms of the number of cities covered as of December 31, 2021.
- Healthvista India Limited’s fully integrated delivery system, comprehensive services, and close interaction with its patients involving customized solutions interwoven with patients’ daily lives help to increase customer stickiness, as compared to that at traditional small hospitals and clinics generally catering to one-off transactional interactions with patients.
- Healthvista India Limited’s disciplined focus on clinical excellence and in-depth medical expertise have been significant factors contributing to its success. The company achieves comparable clinical outcomes at scale in an out-of-hospital setting, through a combination of clinical talent, comprehensive clinical protocols, and medical technology.
- Healthvista India Limited has developed a track record of building long-term relationships with doctors and other medical and nonmedical professionals. The company aims to provide appropriate clinical experience, attractive financial remuneration, and an enabling environment supporting the career aspirations of attendants, caregivers, and nurses.
Healthvista India (Portea) IPO Risk Factors:
- Healthvista India Limited is subject to various operational, reputational, medical, and legal risks associated with the operations of our healthcare services. In particular, the company is exposed to inherent risks of caretaking incidents. An inability to provide quality healthcare catering to the needs of its patients could adversely affect its reputation, business prospects, and financial performance.
- Healthvista India Limited’s business depends on the strength of its brand and reputation. Failure to maintain and enhance its brand and reputation, and any negative publicity and allegations in the media against the company, even if untrue, may adversely affect the brand, reputation and trust in its services, which could result in a material adverse impact on the business, financial condition, results of operations and prospects.
- Healthvista India Limited and its Subsidiaries have incurred net loss in the past, the company cannot assure that it will be able to generate net profits or continue to generate positive cash flow from operating activities in the future.
Healthvista India (Portea) IPO Objects of the Offer:
Healthvista India Limited proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
- Funding the working capital requirements of the Material Subsidiary, namely Medybiz Pharma Private Limited
- Re-payment/ pre-payment of certain indebtedness availed by the Company
- Purchase of medical equipment
- Marketing and brand-building activities
- Inorganic growth initiatives and general corporate purposes
Healthvista India (Portea) IPO Prospectus:
- Healthvista India Limited (Portea) IPO DRHP –
- Healthvista India Limited (Portea) IPO RHP –
Registrar to the offer:
Link Intime India Private Limited
Contact Person: Shanti Gopalkrishnan
E-mail: healthvista.ipo@linkintime.co.in
Tel: +9122 4918 6200