Portea Medical Secures $20 Million in Rights Issue to Fuel IPO Push

Portea Medical, a leading provider of home healthcare solutions in India, has successfully secured $20 million through a rights issue. This capital infusion comes as the company gears up for its much-anticipated initial public offering (IPO).

The company’s board of directors approved the issuance of 69,206,452 Series D1 compulsory convertible preference shares (CCPS) at a price of Rs 23.96 per share. This translates to a total of Rs 165.8 crore, or approximately $20 million, raised from existing shareholders.

IPO Greenlight Received in 2023

It’s important to note that Portea received approval from the Securities and Exchange Board of India (SEBI) to launch its IPO in April 2023. The company, led by Vaibhav Tewari, had already filed its draft red herring prospectus (DRHP) with SEBI in June 2022.

Portea’s Extensive Service Portfolio

Founded a decade ago, Portea offers a comprehensive range of home healthcare services. This includes care for mothers and children, nutritional and dietary consultations, physiotherapy, nursing care, lab testing facilities, counseling services, and elder care solutions. The company also provides convenient lab sample collection and rents or sells medical equipment to patients.

Impressive Track Record and Growth Focus

As per Portea’s website, the company boasts a patient base exceeding 1 million and facilitates over 700,000 patient visits annually. Additionally, they have established strategic partnerships with 63 leading hospitals across India.

However, Portea’s financial statements for the fiscal year ending March 2023 (FY23) show a slight decline in revenue from operations. TheKredible, a startup data intelligence platform, reports a 3.3% decrease compared to FY22. Despite this, Portea remains focused on growth, as evidenced by their recent funding round.

Third DRHP Filer to Raise Funds in 2024

Portea becomes the third company in 2024 to secure funding after filing a DRHP. This year has seen Ola Electric raise $50 million in debt from EvolutionX in April, while MobiKwik secured debt financing from Blacksoil in March. Both MobiKwik and Ola Electric filed their DRHPs in December 2023 and January 2024, respectively.