PharmEasy parent API holdings received approval from SEBI for Rs. 6250 cr-IPO
The parent company of PharmEasy has filed preliminary papers with Sebi for a public listing. An initial share sale could generate more than Rs 6,250 crore. The digital pharmacy and healthcare platform is the latest in a long line of Indian startups looking to go public this year.
In October 2021, Wellness Forever Medicare Ltd, a pharmacy chain backed by Adar Poonawalla, filed draft papers, where its leading shareholder Serum Institute of India (SII) will sell most of its shares. The IPO consists of a fresh issue of Rs 400 crore and an offer for sale of upto 16.04 million shares from existing shareholders and promoters. Proceeds from the issue will be used for capital expenditure, setting up new stores, repayment of debt and funding working capital.
In November 2021, API Holdings filed draught papers with SEBI to raise Rs 6,250 crore through an IPO. The proceeds of the offering will be used to repay debt, fund organic and inorganic growth opportunities through acquisitions, and support other strategic initiatives. The founders and investors will not be selling stock in the IPO. API Holdings is also considering a pre-IPO fundraise of Rs 1,250 crore through private placement. If the pre-IPO round is completed, the amount from the IPO issue size will be reduced, according to the DRHP.
The net proceeds will be used to prepay or repay Rs 1,929 crore in outstanding debt, fund organic growth initiatives totaling Rs 1,259 crore, pursue inorganic growth through acquisitions and other strategic initiatives totaling Rs 1,500 crore, and for general corporate purposes.
API Holdings is the market leader in digital healthcare platforms. Prosus Ventures (formerly Naspers Ventures), TPG Growth, Temasek, CDPQ, LGT Lightrock, Eight Roads, and Think Investments are among its investors.
The issue’s book running lead managers are Citigroup Global Markets India, JM Financial Ltd, Kotak Mahindra Capital, Morgan Stanley India, and BoFA Securities India. PharmEasy, which primarily delivers medicines, announced in June that it would acquire a controlling stake in diagnostic chain Thyrocare for Rs 4,546 crore.
