Portea Medical, a provider of home healthcare solutions, has raised about $20 million through a rights issue. It is raising capital in the midst of preparing to make an initial public offering (IPO).
According to the company’s regulatory filings with the Registrar of Companies, the board of Portea has approved a special resolution to issue 69,206,452 Series D1 compulsory convertible preference shares (CCPS) at an issue price of Rs 23.96 per share, totaling Rs 165.8 crore, or about $20 million, to the equity shareholders of the business on a rights issue basis.
Note that in April of last year, the SEBI gave Portea the all-clear to launch an IPO for Rs 1,000 crore. A draft red herring prospectus (DRHP) was filed in June 2022 by the business headed by Vaibhav Tewari.
Ten years old Services offered by Portea include lab testing, counseling, physiotherapy, nursing, mother and child care, nutrition and diet consultations, and elder care. Along with medical equipment for sale or rental, it also provides a facility for collecting lab samples.
800,000 patient visits and more than a million services have been rendered by Portea, according to their website. It also has affiliations with sixty-three top hospitals.
According to media reports, Portea’s operating revenue decreased 3.3% from Rs 150 crore in FY22 to Rs 145 crore in FY23. Due to fixed overheads and declining scale, the company reported a loss of Rs 53 crore in FY23 as opposed to Rs 40 crore in the previous fiscal year. For FY24, audited financial statements have not yet been filed.
Portea is poised to become the third company to raise capital in 2024 following its DRHP filing. In March, MobiKwik raised debt from Blacksoil; earlier this month, Ola Electric raised $50 million in debt from EvolutionX. In December and January, respectively, MobiKwik and Ola Electric submitted their DRHPs.
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