Healthvista India Limited IPO

Last Updated on October 12, 2023 by BFSLTeam BFSLTeam

According to experts, the market of out-of-hospital healthcare in India might triple in size from 2021 to 2027, growing at a CAGR of 17% during the same period. If you have been thinking about investing in this particular sector, Healthvista India Limited IPO may be a lucrative opportunity. 

It’s a company that focuses on community and social service services among others under the popular brand “Portea”, bringing hospital-quality services into people’s homes. The company has now filed its draft papers with SEBI to raise funds via an IPO for debt repayment, growth initiatives and other purposes.

In this blog, we have provided some of the important details such as strengths and risks involved with investing in this particular IPO. Skim through these details before making an investment-related decision. 

About Healthvista India Limited 

Healthvista India Private Limited is one of India’s leading out-of-hospital healthcare providers based on market share and revenue. The brand provides primary care, geriatric and palliative care, post-operative and post-hospitalisation care and cancer care among others, all at home. 

Healthvista India has agreements with leading hospitals, corporates, insurers and third-party administrators to ensure high-quality services to its customers. As of 31 March, 2022, it has 40 offices across India and agreements with 63 hospitals and 8 insurance companies.

The company, which belongs to the out-of-hospital healthcare sector, has maintained its focus on community, social service, and personal business for the previous ten years. The main aim of Healthvista India Limited is to make high-quality primary healthcare accessible to people directly at their homes at affordable prices. 

IPO Details and Objectives 

Healthvista India has filed its Draft Red Herring Prospectus to float an initial public offering and acquire funds of around Rs. 1,000 crore. The IPO will comprise a fresh issue of equity shares worth Rs. 200 crore. An Offer for Sale (OFS) of up to 56,252,654 shares by selling shareholders will also be launched.

The company will use the proceeds from its IPO to fund its working capital requirements for the growth and development of Medybiz Pharma. It will use the rest to repay debt and to pay for medical equipment worth Rs. 300 million. Some funds will also be used for marketing, inorganic growth initiatives, brand-building activities, and other general corporate purposes.

Also Read: Types of IPO

Strengths 

Check the qualitative factors which are Healthvista India’s strengths. It will help you understand the true potential of the company: 

• Healthvista India is an out-of-hospital healthcare brand that has a massive geographical footprint in India. The company has also focused on establishing strategic relationships in the Indian healthcare ecosystem.
• The company offers a wide range of services for patients. It has helped to build stronger relationships with customers which have helped in creating multiple revenue streams.
• Detailed clinical protocols and extensive medical expertise have helped the company deliver high-quality healthcare.
• Healthvista India Limited uses its digital portfolio and high-end proprietary technology to offer a wide range of offerings to its esteemed customers.
• This company has the ability to attract, train, and retain excellent medical personnel. 
• A unique strength of Healthvista India is that it has ensured a stable and consistent financial performance with margins that have improved consistently.
• Its leadership team is highly experienced and driven to succeed.

Risks Involved 

The most important benefit of analysing the risks involved with investing in an IPO is that it will help you identify whether the investment is aligned with your risk appetite or not. Check out the risks involved with Healthvista India below:

• The healthcare provider’s business is subject to a lot of reputational, operational, legal, and medical risks. Furthermore, there are risks related to caretaking incidents.
• If the company is unable to offer high-quality healthcare services to its patients, there will be a negative impact on its reputation, financial performance, and overall business. 
• The company might also be exposed to risks relating to the handling of medical data. A data leak or improper storage of patient data could be very damaging to its reputation.
• Healthvista India relies heavily on its healthcare professionals, nurses, and other caregivers. Its business will suffer greatly if the company is unable to retain these professionals.

Also Read: Benefits of Investing in IPO

Summary 

As per the latest news reports, SEBI has provided its observations to Healthvista India’s IPO application, providing it with a final nod. The company has yet to announce its IPO launch date, price and other important details.

Healthvista India Limited belongs to the out-of-hospital healthcare sector in India and wishes to raise funds for meeting its working capital requirements and other corporate purposes. If you are interested, go through the strengths and risks of Healthvista India Limited IPO to decide whether the investment would be ideal for your financial requirements. 

Also Read: How is an IPO valued?

Healthvista India Limited IPO FAQs