API Holdings, the parent company of pharmacy platform PharmEasy, has filed for an initial public offering (IPO) of up to Rs 62.50 billion ($842.43 million), becoming the latest startup in the country to pursue a domestic stock listing. The company provides health services ranging from teleconsultation to radiology tests to home delivery of medical products and devices.
API Holdings is also exploring the option of a pre-IPO fundraise via private placement to the tune of Rs 1,250 crore. If the Pre-IPO round is done, it will reduce the amount from the IPO issue size.
The IPO is the primary issuance and the fund will be used to prepay or repay the outstanding debt of Rs 1,929 crore, fund organic growth initiatives aggregating to Rs 1,259 crore, pursue inorganic growth through acquisitions and other strategic initiatives totalling Rs 1,500 crore, and for general corporate purposes.
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 bankers to the public issue.
The company’s revenue from operations jumped to Rs 2,335 crore in FY21 from Rs 668 crore in the previous year. In the first quarter of the current fiscal, its revenue from operations stood at Rs 1,197 crore.
The company counts technology-focused venture capital firm Naspers and entities related to global investment group CDPQ and private-equity firm TPG among its investors.
In a bid to diversify its operations, the firm had acquired Thyrocare Technologies, India’s largest diagnostic test provider by volumes, in September.
PharmEasy’s IPO filing comes on a day when Indian fashion e-commerce startup Nykaa is set to debut on stock exchanges, while fintech platform Paytm closes subscription prior to its debut.
