Early mover advantage and scale key themes for PharmEasy investors

Success depends on its ability to integrate various entities across the healthcare value chain

API Holdings, the parent of PharmEasy, has filed its draft red herring prospectus for an IPO to raise upto Rs 6,250 crore. The proceeds will be used to prepay, or repay, debt of Rs 1,929 crore, fund organic growth (Rs 1,259 crore), and allocate Rs 1,500 crore for acquisitions.

API may consider a pre-IPO fundraiser of about Rs 1,250 crore, in which case it will reduce the size of the IPO. There are no offer for sale, which means the issue is of new shares. The current investors’ list includes Prosus Ventures, TPG Growth, CDPQ and Temasek.

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