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PharmEasy parent API Holdings files for Rs 6,250 crore  IPO
Photo Credit: ThinkStock

PharmEasy parent API Holdings has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) to raise Rs 6,250 crore through an initial public offering (IPO) from primary issuance of shares.  

API Holdings may raise Rs 1,250 crore in a pre-IPO round. The IPO issue size will be reduced by the amount raised in the pre-IPO round.  

Last month, it raised a $350 million pre-IPO round at a post-money valuation of $5.6 billion. 

The company has raised over $955 million in 2021 alone.  

API Holdings counts Naspers (12.04%) and Temasek Holdings (10.84%) as key financial investors who own double digit stakes in the company apart from more than a dozen more financial backers including TPG Growth, CDPQ, Bessemer, B Capital and others.   The founders and the investors are not selling shares in the IPO.  

According to the DRHP, it will use the net proceeds of the offering to repay all or a portion of Rs.1,929 crore worth of debt and up to Rs 2,759 crore may be used for organic and inorganic growth.  

The firm’s consolidated operating revenues more than tripled from Rs 667.5 crore in FY20 to Rs 2,335.3 crore in FY21. Its losses during the same period  nearly doubled from Rs 335 crore in FY 20 to Rs 645 crore in FY21.   

Citigroup Global Markets India, JM Financial Ltd, Kotak Mahindra Capital, Morgan Stanley India and BoFA Securities India are joint bookrunners for the IPO.  

Cyril Amarchand Mangaldas and Latham & Watkins LLP will be the legal advisors to the company with AZB & Partners acting as the special legal counsel. Shardul Amarchand Mangaldas & Co. and Linklaters Singapore Pte. Ltd. are the legal advisors to the Book running lead managers.  

The company’s digital healthcare platform provides end-to-end solutions for healthcare needs to its customers through digital tools and information on illness and wellness, offering teleconsultation, offering diagnostics and radiology tests, and delivering treatment protocols including products and devices.

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