Online pharmacy PharmEasy's parent company API Holdings filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise Rs 6,250 crore via an initial share sale. The IPO is in the form of primary issuance of equity shares and does not constitute an offer for sale (OFS), as per the draft red herring prospectus. This implies that the existing shareholders of the company would not divest their stake.
The company may consider a private placement of equity shares aggregating Rs 1,250 crore. If the pre-IPO placement is undertaken, the issue size will be reduced.
API Holdings informed DRPH that it would utilise the net proceeds to prepay or repay the outstanding debt of Rs 1,929 crore. Additionally, it looks to fund organic growth initiatives totalling Rs 1,259 crore, pursue inorganic growth through acquisitions and other strategic initiatives aggregating to Rs 1,500 crore, and for general corporate purposes.
The draft filing comes after a slew of tech-based companies such as Zomato, Nykaa and Policybazaar successfully concluded their initial public offerings (IPOs).
The digital healthcare platform API Holdings is an integrated, end-to-end business that aims to provide solutions for the healthcare needs of consumers providing digital tools and information on illness and wellness, offering teleconsultation, offering diagnostics and radiology tests, and delivering treatment protocols including products and devices.
Its investors include Prosus Ventures (formerly Naspers Ventures), TPG Growth, Temasek, CDPQ, LGT Lightrock, Eight Roads, and Think Investments.
API Holdings' pre-IPO round that closed in October saw participation from a host of investors, including Singapore-based Amansa Capital, US-based hedge fund Janus Henderson, global healthcare focussed asset manager OrbiMed, tech-focussed Steadview Capital, Abu Dhabi's sovereign wealth fund ADQ, and global Asset Manager Neuberger Berman.
The digital healthcare platform API Holdings is an integrated, end-to-end business that aims to provide solutions for the healthcare needs of consumers providing digital tools and information on illness and wellness, offering teleconsultation, offering diagnostics and radiology tests, and delivering treatment protocols including products and devices.
In May, PharmEasy, which is primarily into medicine deliveries, completed the acquisition of Medlife.
In June, API Holdings announced that it will acquire a controlling stake in diagnostic chain Thyrocare for Rs 4,546 crore, and in September, the company acquired a majority of Bengaluru based tech-focussed, healthcare supply chain startup Akna Medical Pvt Ltd (Aknamed) which is backed by Lightrock for an undisclosed sum.
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