API Holdings, the parent of e-pharmacy firm PharmEasy, on Monday said it has received approval from the Securities and Exchange Board of India (SEBI) to raise funds. 6,250 crore through Initial Public Offering (IPO).
SEBI approval The move comes amid rumors that FarmEasy may delay its IPO in the face of market volatility, which has been brutal for shares of newly listed companies last year.
API Holdings had filed its draft red herring prospectus (DRHP) with Sebi in November last year on the back of several IPOs and listing of new age companies such as Zomato, PolicyBazaar and Paytm.
PharmEasy’s IPO will be a primary share sale of shares of only 6,250 crores. company will use 1,929 crore borrowings or prepayment proceeds from the IPO and 1,259 crore to fund organic development initiatives. it will also allocate 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives.
Last year, it made history with the acquisition of listed diagnostics firm Thyrocare Technologies.
The company may also consider a private placement overall 1,250 crores. If such placement is completed, the size of the new issue will be reduced, it noted.
Prior to filing the IPO, PharmEasy raised a $350 million pre-IPO round in October at a post-money valuation of $5.6 billion. The company raised over $955 million in 2021 alone.
API Holdings counts Naspers (12.04%) and Temasek Holdings (10.84%) as the leading financial investors, which, in addition to more than a dozen financial backers including TPG Growth, CDPQ, Bessemer, B Capital and others, are leading double-digit gains in the company. Own the stakes. The founders and investors are not selling shares in the IPO.
Citigroup Global Markets India, JM Financial Limited, Kotak Mahindra Capital, Morgan Stanley India and BofA Securities India are the joint bookrunners for the IPO.
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