- None of
PharmEasy ’s existing investors would be selling their shareholdings in this public issue. - PharmEasy would use the proceeds from the IPO to prepay or repay its outstanding debt of ₹1,929 crore.
- The company would also spend ₹1,500 crore to boost its growth inorganically through acquisitions and strategic initiatives.
The entire ₹6,250 crore would be raised as a fresh issue. The issue does not have any offer for sale (OFS) component, meaning none of PharmEasy’s existing shareholders would be selling their stake in the company as of now.
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.
PharmEasy would use the proceeds from the IPO to prepay or repay its outstanding debt of ₹1,929 crore, as per the DRHP. Besides this, the company will also spend ₹1,259 crore to fund organic growth initiatives and another ₹1,500 crore would be spent on inorganic growth through acquisitions as well as other strategic initiatives.
Kotak Mahindra Capital Company, Morgan Stanley India Company, BoFA Securities India, Citigroup Global Markets India, JM Financial are bankers to the public issue.
The company had raised its pre-IPO round in October 2021, where Janus Henderson, Global Healthcare Focussed Asset Manager OrbiMed, Tech Focussed Steadview Capital, and Abu Dhabi’s sovereign wealth fund ADQ participated. The company was reportely priced at $5.4 billion.
PharmEasy, founded in 2014, caters to the chronic care segment and offers a range of services such as teleconsultation, medicine deliveries, and sample collections for diagnostic tests.
It also operates a business-to-business (B2B) pharma marketplace with over 6,000 consultation clinics with 90,000 partner retailers pan India.
The company 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 company had also announced its merger with rival Medlife earlier this year to build a consolidated platform.
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