API Holdings said the company may, in consultation with BRLMs (Book Running Lead Managers), consider private placement of equity shares for a total cash consideration of Rs 1,250 crore, before filing the Red Herring Prospectus (RHP) with RoC . Its DRHP.
If a pre-IPO placement is done, the issue size shall be reduced by the amount raised from the pre-IPO placement and the minimum issue size shall be at least 10 per cent of the post-issue paid-up equity share capital of the company. company.
The company intends to prepay or repay certain outstanding borrowings taken by it or its subsidiaries to the tune of Rs 1,929 crore. It intends to use Rs 1,259 crore for funding organic growth initiatives, while it intends to use Rs 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives.
“We continue to invest in three core areas to grow our business including a) marketing and promotional activities to increase awareness of our offerings and brands, b) supply chain infrastructure and fulfillment, and c) technology. capabilities and infrastructure,” the company said.
“Going forward, acquiring and integrating companies, teams and business models across the healthcare value chain is one of our key business focus areas, and we intend to pursue strategic investments and acquisitions that complement our businesses. These investments have been made in the past, and we expect them to continue to be critical to the growth of our business in the future.”
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Morgan Stanley India Company, BofA Securities India, Kotak Mahindra Capital Company, JM Financial and Citigroup Global Markets India are the bankers to the issue.
The company said it has funded the growth through proprietary funds as well as borrowings and aims to divest at a consolidated level by repayment or prepayment of some of its borrowings.
With this, PharmEasy will join startups that came up with public issues this year, including Paytm, Nykaa and PolicyBazaar.