Two venture capital-backed companies – healthcare technology firm Portea and software-as-a-service fintech firm Zaggle–have received the Securities and Exchange Board of India’s (SEBI) approval for their initial public offerings.
However, amid the continuing lull in the IPO market and volatility in secondary markets, it remains to be seen when the two companies open their IPOs for subscriptions.
Last year, automobile e-commerce platform Droom Technology and wearables company BoAt withdrew their IPO plans amid bearish sentiments. In 2023, only four companies so far have floated their IPOs.
Zaggle, which offers products for companies to manage their business expenses, had filed its preliminary IPO papers with SEBI in December last year to raise as much as Rs 750 crore through the issue, VCCircle reported at the time. The Mumbai-based company’s issue will comprise a fresh issue of Rs 490 crore and an offer for sale of up to 10.53 million shares by shareholders.
Through the issue, VenturEast and GKFF Ventures are looking at a partial exit. Zuzu Software Services, which holds about an 18.95% stake, was aiming to sell a stake of up to 10%.
The company did not specify the timeline for the issue. However, last month, it raised Rs 50 crore in debt from Vivriti Asset Management.
Healthvista India Ltd, which runs Portea, had filed its draft red herring prospectus with SEBI in July last year. It aimed to raise about Rs 1,000 crore through the issue.
The IPO comprises a fresh issue up to Rs 200 crore and an OFS of up to 56.25 million shares. The company is backed by VC firms Accel and VenturEast, among others. Manipal Group’s MEMG CDC Ventures, Sabre Partners Trust, and Qualcomm are also looking to exit via the IPO.