API Holdings, which owns and operates online pharmacy, PharmEasy, is all set to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) next week, sources with direct knowledge of the development told Moneycontrol.
The issue size is likely to be between Rs 6,000 crore and Rs 6,500 crore. The sources said that the company expects to price the IPO over $7 billion (Rs 52,440 crore).
The issue will be a primary share sale and the proceeds will go to the company. There will not be any offer for sale by existing investors in the IPO, the sources cited earlier said.
As per the current demand in private markets, the valuation of the company is close to $9.5 billion. The company aims to price the IPO at around a 25 percent discount to price seen in private markets, the sources cited earlier said. The final valuation will depend on the demand seen around listing, they added.
The company aims to list by January-February of 2022, subject to approval from the markets regulator, the Securities and Exchange Board of India (SEBI).
PharmEasy did not comment in response to Moneycontrol’s query.
In June, API Holdings also acquired 66.1 percent in Thyrocare Technologies. The acquisition process is underway.
According to its Linkedin page, PharmEasy delivers medicines and healthcare products in 1,000+ cities in India, covering 22,000+ pin codes.
The Indian retail pharmacy segment is estimated to be worth $18 billion and is expected to touch $50 billion by 2025, according to data from the Department of Industrial Policy and Promotion.