The funds will be raised through fresh issuance of equity shares, according to the draft red herring prospectus (DRHP).

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.

The company plans to utilise the net proceeds to prepay or repay an outstanding debt of Rs 1,929 crore, fund organic growth initiatives totalling to Rs 1,259 crore, pursue inorganic growth through acquisitions and other strategic initiatives aggregating to Rs 1,500 crore, and for general corporate purposes.

API Holdings is the leading digital healthcare platform. Its investors include Prosus Ventures (formerly Naspers Ventures), TPG Growth, Temasek, CDPQ, LGT Lightrock, Eight Roads and Think Investments.

Citigroup Global Markets India, JM Financial Ltd, Kotak Mahindra Capital, Morgan Stanley India and BoFA Securities India are the book running lead managers to the issue.

In June, PharmEasy, which is primarily into medicine deliveries, announced that it will acquire a controlling stake in diagnostic chain Thyrocare for Rs 4,546 crore.