Bangalore: API Holdingsfather of online pharmacy PharmEasyhas filed its draft Red Herring Prospectus (DRHP) with the market regulator Self For an initial public offering of Rs 6,250 crore with fresh issue of shares. The Mumbai-based company may also consider raising Rs 1,250 crore through private placement of shares before filing its red herring prospectus (RHP) and if this happens, the issue size will be changed accordingly.

PharmEasy said it will infuse Rs 1,929 crore from the company IPO Income to repay or prepay loans and Rs 1,259 crore Fund In addition to allocating Rs 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives, the organic growth initiative.

ET in its October 30 edition reported that PharmEasy is just days away from filing its DRHP to raise Rs 6,000-7,000 crore through a public issue, which will be entirely through fresh issuance of shares. As reported by ET in that edition, PharmEasy in its DRHP said it has acquired only 50% stake in enterprise resource planning firm Marg ERP for Rs 254 crore. While PharmEasy acquired Thyrocare for more than $600 million in June, it has also bought several firms such as Aknamed and Medlife in the past year.

For PharmEasy, marketing and promotion will be a key investment area to increase awareness of its brand and services. It spent around Rs 95 crore in marketing in the first three months of the current FY 2022, compared to around Rs 138 crore in FY 2020 and over Rs 134 in FY21.

For the financial year 2021, API Holdings’ total income grew more than three times to Rs 2,360 crore from Rs 737 crore in the previous year. Its loss increased by 90% to Rs 641 crore. DRHP showed that in the three months ended June 2021, it reported an income of Rs 1,207 crore with a loss of Rs 314 crore.

While PharmEasy has emerged as the largest drug delivery firm, it is diversifying to position itself as a digital healthcare firm with acquisitions such as Thyrocare.

In addition to branding, PharmEasy said it will use the new capital for its supply chain infrastructure and fulfillment, and technology capabilities and infrastructure. “In addition, 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. We have made these investments in the past, and we expect these to continue to be critical to the growth of our business in the future. We have funded our growth through proprietary funds as well as borrowings and we continue to maintain some of our intends to deliver at a consolidated level by repayment or prepayment of borrowings,” the company said in its draft IPO papers.

As reported by ET last month, the parent of PharmEasy recently closed a pre-IPO round of approximately $350 million. Back then, it was valued at around $5.6 billion.

In total, so far in 2021, it has raised nearly $1 billion, including secondary share sales.

PharmEasy entered the unicorn club in April at a valuation of $1.5 billion, when Prosus Ventures, TPG and others led a $350 million funding round. After the Thyrocare deal, it was valued at a little over $4 billion.

Singapore-based Amansa Capital, Blackstone-backed hedge fund Apah Capital, US hedge fund Janus Henderson, OrbiMed, Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, hedge fund Neuberger Berman and London’s San Group are among the new investors in PharmaEasy. During this time the stake was bought. The company’s recently concluded pre-IPO round.

With the filing of DRHP, PharmEasy joins the likes of Paytm, Policybazaar and Delhivery, who have also applied for the IPO. Zomato and Nykaa have already made a great debut on the exchanges here. The company competes with Tata-owned 1mg and Reliance Industries’ Netmeds.