Out-of-hospital healthcare provider Healthvista India Limited IPO -Pricing, Issue size, Issue date, and actionable insights

Healthvista India IPO – Company Overview

Healthvista India IPO: Healthvista India Limited was founded in 2013 by Ganesh Krishnan, & Meena Ganesh. The company started as a private limited on May 25, 2013. The company converted into a public limited company on June 18, 2022, and changed the name to ‘Healthvista India Limited’.

Read the complete company insights here – “Healthvista India Limited Company Review – Key products, finance, management team, strategic insights”

Healthvista India IPOFounders and leaders

Ganesh Krishnan and Meena Ganesh are the founder promoters of the company. Both hold 23.86% of the total Shareholding which is 150,000 equity shares as of December 31, 2021. Ganesh Krishnan holds a bachelor’s degree of science in mechanical engineering from the University of Delhi. He also has a post-graduate diploma in management from the Indian Institute of Management, Calcutta.

Healthvista India Limited Financial analysis

Healthvista India Limited recorded negative growth in total revenue from the operation. The total revenue from the operation has gone down 11.5% from INR 1441.78 million in FY 2019 to INR 1275.95 in FY 2021. Total income decreased by 12.8% from INR 1494.82 million in FY 2019 to INR 1303.89 million in FY 2021. Further, the company recorded total expenses also decreased from INR 2211.62 million in FY 2019 to INR 1674.04 million in the year 2021. However, the company has been at a loss for the last three years reported in DRHP filed with SEBI.

Read financial details of the company here – “Healthvista India Limited Company Review – Key products, finance, management team, strategic insights”

Healthvista India Limited IPO – filed DRHP

Healthvista India Limited (IPO Review) has filed its Draft Red Herring Prospectus (DRHP) to raise INR 200 crore in fresh issues and offer for sale of up to 56,252,654 Equity Shares.

The promoters and investors of the company are selling their shares in an offer for sale. Accel Growth III Holdings (Mauritius) Limited and Accel India III (Mauritius) Limited are among the major shareholders who are selling up to 12,070,214 Equity Shares and up to 8,504,709 Equity Shares respectively.

Healthvista India Limited is proposing its shares be listed on both the Stock Exchanges- BSE and NSE. Book Running Lead Managers of this IPO are SBI Capital Markets Limited, JM Financial Limited, and IIFL Securities Limited. The registrar for this IPO is Link Intime India Private Limited.  The company may also go for pre-IPO placement. If pre-IPO placement is completed, the amount raised from this will be reduced from the fresh issue.

The company’s equity shares outstanding before the initial public offer stand at 68,455,200 shares. Up to 75% of the offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, the “QIB Portion”). The company may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the anchor investor allocation shall be reserved for allocation to domestic Mutual Funds only. No more than 10% of the Net Offer shall be available for allocation to Retail Individual Investors.

Healthvista India IPOUtilization of Net Proceeds

Healthvista India Limited will not receive any proceeds from the offer for sale. However, the company will utilize the net proceed of the fresh issue for organic growth. The company is planning to fund the working capital requirements of its Material Subsidiary – Medybiz Pharma Private Limited. Healthvista India Limited will also repay/ pre-pay a certain amount of debt availed by the company. The rest of the amounts from net proceeds will be utilized to purchase medical equipment. The company is also planning to spend a certain amount on Marketing and brand-building activities to expand its reach in semi-urban areas.

Healthvista India Limited will receive INR 200 crores from the net proceeds of the fresh issue of IPO. The company proposes to utilize INR 50 crores to meet the working capital need of its subsidiary. The company is spending INR 20 crores to expand its core business through marketing and business promotion activities. Healthvista India will invest INR 30 crores each to purchase medical equipment and pay a certain portion of the debt of the company.

Strategy and Outlook

Healthvista India Limited is investing in organic growth, through marketing and business promotion activities as well as to meet the working capital requirements. As per the DRHP document filed by the company, the aggregated outstanding borrowings of the company and subsidiaries amounted to INR 484.29 million on a consolidated basis, as of May 31, 2022. The amount the company is planning to repay is about INR 300 million, only 60% of the debt will be repaid. The company is still at a loss on an annual basis. Hence, my view is to avoid this IPO till the company touches the break-even point in terms of operating revenue.

Healthvista India Limited IPO ReviewDetails
Subscription Dates  Coming soon
Anchor Investor Bidding DateComing soon
BID/OFFER Opens onComing soon
BID/OFFER closes OnComing soon
Price BandComing soon
Offer for sale        56,252,654 Equity Shares
Fresh Issue of Shares   INR 200 crores
Equity Shares outstanding before the Issue68,455,200 Equity Shares      
Minimum Bids (Lot Size)Coming soon
Face ValueINR 1 Per share
Listing onBSE & NSE