API Holdings' Rs 3,500 cr rights issue oversubscribed: Dhaval Shah

PharmEasy's parent API Holdings recently conducted a Rs 3,500 crore rights issue and it has been over-subscribed, claimed co-founder Dhaval Shah.

“We launched a rights issue of Rs 3,500 crore and we are glad to announce that we are oversubscribed. Yes, we raised Rs 3,500 crore and there was more demand which we had to politely reject,” said Shah, in a LinkedIn post. “Every single shareholder stood up and supported us, believed in our vision and saw value in what the team at API is building.”

He said in November 2022, the firm had aimed for profitability by April 2023.

“Not move 'towards' profitability or not 'try to be profitable' – just be 'profitable'. And the power of a common vision, teamwork, people coming together and moving towards a common goal and just out-executing was proved,” said Shah. “Not for a month or not for a quarter but for all months of H1 put together – (the first 6 months, April to September 2023) we clocked a cumulative Rs 60 crore of Ebitda at API.”

He didn't comment on the valuation. API Holdings is also the parent company of Thyrocare Technologies Ltd. and Docon Technologies Pvt. The oversubscription of the Rs 3,500 crore rights issue reportedly highlights a 90 per cent drop in valuation. The share price was set at Rs 5 each, giving the company a valuation of $500 million. This is down from its previous peak valuation of $5.6 billion. The proceeds from the Rs 3,500 crore fundraising are expected to help the company service debt that it raised from Goldman Sachs last year.