The parent company of online pharmacy store PharmEasy, API Holdings, has filed a draft red herring prospectus (DRHP) for an initial public offering with SEBI. The company plans to raise Rs 6,250 crore through fresh equity issuance. Moneycontrol was the first to report on this.
API Holdings is also weighing the option to go for pre-IPO fundraise via private placement for a considerable amount of Rs 1,250 crore. If the company manages to get the funds before its IPO, then there are chances that it will reduce that amount from the IPO size.
The IPO’s primary goal would be to pay off a debt of Rs 1,929 crore, support organic growth efforts of Rs 1,259 crore, seek inorganic development through acquisitions and other strategic initiatives worth Rs 1,500 crore, and for other corporate reasons.
Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Private Ltd, BoFA Securities India Limited, Citigroup Global Markets India Private Ltd, JM Financial Ltd are the “multi-bookrunner syndicate” that will facilitate the IPO for the company.
The company’s revenue from operations saw an increase of Rs 1667 crore in FY21 to Rs 2,335 crore from Rs 668 crore in FY20. In the first quarter of the ongoing fiscal, the company’s revenue from operations came in at Rs 1,197 crore.
The company’s net loss in FY21 stretched to Rs 645 crore from Rs 335 crore in FY20. In the first quarter of FY22, the net loss reached Rs 314 crore.
Its proforma Gross merchandise value ( GMV) in the previous fiscal stood at Rs 787 crore, while in the first quarter of the current fiscal, it stood at Rs 303 crore.
Founded in 2015 by Dharmil Sheth and Dr. Dhaval Shah, Pharmeasy is an inline pharmacy store. On September 22, 2020, the firm got the approval from Competition Commission of India for the merger of Medlife (Online Pharmacy) with PharmEasy. As per the terms and conditions of this deal, PharmEasy’s Parent Entity will now own the 100% equity of Medlife and the promoters of Medlife will receive a 19.95% stake in the entity.