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India's leading online digital healthcare start-up, API Holdings Limited, which owns digital pharmacy brand PharmEasy has filed draft papers for an initial public offer (IPO) to raise up to ₹6,250 crore.
The issue will be a primary share sale as none of the existing promoters are making any offer for sale or secondary sale of shares by any existing shareholder.
The IPO proceeds will be utilised partly for prepayment/repayment of all or a portion of certain outstanding borrowings availed by the company and some of its subsidiaries and partly will fund organic growth initiatives besides pursuing inorganic growth through acquisitions and other strategic initiatives.
Growth plans
The company has clarified that it intends to continue to invest in three core areas for the growth of its business: a) marketing and promotional activities to increase awareness about its offerings and brands, b) supply chain infrastructure and fulfilment, and c) technology capabilities and infrastructure.
“Further, acquiring and integrating companies, teams and business models in the healthcare value chain is one of our key business focus areas,” it said in its DRHP, filed with markets regulator Securities and Exchange Board of India (SEBI) on Monday, November 8.
Additionally, the company, in consultation with the bankers to the issue, may consider a private placement aggregating up to ₹1,250 crore. If such placement is completed, the fresh issue size will be reduced.
The charge of the young brigade from PharmEasy
Kotak Mahindra Capital, Morgan Stanley India, BoFA Securities India, Citigroup Global Markets India and JM Financial Ltd are the joint book running lead managers for the IPO.
API Holdings Limited provides end-to-end health services ranging from tele consultation, diagnostics, radiology tests and home delivery of treatment protocols, including products and medical devices. The company recently acquired 66.1 per cent stake in Thyrocare Technologies from its founder A Velumani for ₹4,546 crore through its subsidiary Docon Technologies.
The DRHP mentions the company’s consolidated revenues from operations at ₹2,335 crore for the year fiscal ended March 31, 2021 with net loss of ₹641 crore. Total borrowings stood at ₹585 crore, including current borrowings and non-current borrowings.
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