The initial public offer (IPO) of PharmEasy has been withdrawn after the company received capital market regulator SEBI’s (Securities Exchange Board of India) go-ahead in February this year. The IPO was withdrawn due to market conditions and strategic considerations, as per the the company. Now, it plans to raise funds via rights issue.
API Holdings, the parent entity of PharmEasy, on August 20 announced the withdrawal of the draft red herring prospectus (DRHP). The pre-IPO draft papers were filed on November 9 last year. .
“The company is committed to its expansion plans, and is considering to raise funds via a rights issue. Shareholders of the company will receive the letter of offer inviting them to participate in the rights issue. The rights issue will be open for a period of 30 days, starting from on or around the first week of September,” the company said.
Earlier, in its DRHP, PharmEasy had stated that it was planning to raise Rs 6,250 crore from the issue. The proceeds were to be used for settling an 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.
The SEBI had approved the initial public offering of PharmEasy, along with Adar Poonawalla-backed Wellness Forever Medicare and metal recycling firm CMR Green Technologies in mid-February. The three companies were issued observation letters by the market regulator on February 16-17, 2022 after they filed preliminary IPO papers with SEBI between September and November last year.