- PharmEasy would use the gains from the IPO to prepay or repay its outstanding debt of ₹1,929 crores.
- The company would also spend ₹1,500 crores to increase its growth inorganically through acquisitions and strategic actions.
API Holdings — the parent firm of online pharmacy startup PharmEasy, has listed its draft red herring prospectus (DRHP) to raise ₹6,250 crore in its initial public offering (IPO).
The entire ₹6,250 crore would be raised as a new issue. The issue does not have any proposal for sale (OFS) component, meaning none of PharmEasy’s current shareholders would be trading their stake in the company as of now.
PharmEasy would use the gains from the IPO to prepay or repay its outstanding debt amount of ₹1,929 crore, as per the DRHP. Besides this, the organisation will also use ₹1,259 crore to support organic growth initiatives, and another ₹1,500 crore would be spent on inorganic growth through acquisitions as well as other strategic actions.
Kotak Mahindra Capital Company, Morgan Stanley India Company, BoFA Securities India, Citigroup Global Markets India, JM Financial are bankers to the public issue.
PharmEasy, established in 2014, caters to the chronic care division and offers various services such as teleconsultation, medicine deliveries, and sample collections for diagnostic tests.
It also runs a business-to-business (B2B) pharma marketplace with over 6,000 consultation clinics with 90,000 partner retailers pan India.
The corporation was founded by five friends Dharmil Sheth, Dhaval Shah, Harsh Parekh, Hardik Dedhia, and Siddharth Shah.
Earlier this year, PharmEasy acquired publicly-listed Thyrocare, which is a chain of diagnostic and preventive care laboratories. The acquisition opened up the doors for API Holding’s public listing.
The corporation had also announced its alliance with rival Medlife earlier this year to build a consolidated platform.
