PharmEasy’s parent company API Holdings Limited withdrew its plans to launch an IPO in 2022 after Paytm and Zomato failed to impress investors last year.
The PharmEasy IPO approval by SEBI lapsed in February 2023.
Important – Now the company needs to re-file papers with SEBI and get fresh IPO approval if it wants to continue with the IPO plans.
PharmEasy filed draft papers with SEBI in November 2021 to raise money through the fresh issue of equity shares aggregating up to Rs. 6250 crores.
All of the details in the article regarding PharmEasy IPO are taken from the last DRHP dated 8th November 2021 available on SEBI and the stock exchange website.
We will update the IPO details as soon as the company re-files the paper for IPO.
Check here the list of other upcoming IPOs in 2023.
API Holdings Limited IPO Details
The company needs to get fresh SEBI approval for IPO. We will update you as soon as the company receives approval and comes out with an IPO.
| Particulars | Details |
| IPO Opening date | (To be announced) |
| IPO Closing date | (To be announced) |
| IPO Price | Rs. xx to Rs. xx (To be announced) |
| Lot size | xx shares (To be announced) |
| Issue size | Rs. 6250 Cr |
| No. of fresh shares | Xx shares aggregating to Rs. 6250 crores |
| Listing on | BSE and NSE |
API Holdings Limited IPO Timetable
We shall update you when the IPO is ready to be launched.
| Particulars | Details |
| IPO Opening date | (To be announced) |
| IPO Closing date | (To be announced) |
| Basis of Allotment date | (To be announced) |
| Credit of Share | (To be announced) |
| Listing date | (To be announced) |
Industry Overview
Awareness about diseases, treatments, health centers, preventive care, and health insurance is fairly limited in India. Many Indians prefer to opt for self-medication as the first resort for a number of ailments.
As a result, the hospitalization rate in India (at 3-4%) is one of the lowest in the world, as per the India Economic Survey
Of the ~INR 10.4 trillion healthcare spend, pharma, diagnostics, OTC, consultation, and hospital supplies together account for ~INR 4.2 trillion (~US$56 billion) annual spend.
Indian Out-Patient healthcare segment is a large ~INR 4.3 trillion market, split across pharma, diagnostics, OTC, consultation and hospital treatments. The OPD journey typically starts with the patient becoming aware of health-related problems, either via experiencing the symptoms or via preventive healthcare check-ups.
As a result, the OPD market is heavily fragmented & inefficient in India and hence has a strong need for disruption by digital solutions, similar to how other unorganized markets in India (such as retail, travel, and payments) have become more efficient and orderly, with the help of digital solutions.
API Holdings Limited Overview
API Holdings is India’s largest digital healthcare platform (based on GMV of products and services sold for the year ended March 31, 2021).
The company operates an integrated, end-to-end business that aims to provide solutions for the healthcare needs of consumers across the following critical stages –
- Providing digital tools and information on illness and wellness
- Offering teleconsultation
- Offering diagnostics and radiology tests
- Delivering treatment protocols including products and devices.
As of FY 2021, API Holdings’ total gross merchandise value was Rs. 78.65 billion. Through the PharmEasy app, 3.4 million eConsultations were conducted.
Across the platform, the company served 3,261 wholesalers, 87,194 pharmacies, and 4,617 prescribing doctors and clinics and 926 hospitals as of June 30, 2021.
PharmEasy marketplace had 25 million registered users.
API Holding’s revenue from operations grew by 249.8% to Rs. 2335.2 crores in Fiscal 2021 from Rs. 667.5 crores in Fiscal 2020.
In the same period, the EBITDA losses have also improved from (57.9)% in Fiscal 2020 to (24.4)% in Fiscal 2021.
API Holdings Limited GMP
Grey Market Price (GMP) information is available approximately 4-5 days before the IPO opens and persists until the listing date.
For API Holdings Limited Ltd IPO, we have already obtained GMP data for the past 3 days, which should provide a reasonable indication of price upon listing.
GMP serves as an effective reflection of the true narrative surrounding a stock. But you need to take precautions because GMP is not an official price and only an indicative value.
Below is a brief summary of the GMP for API Holdings Limited Ltd for the last 4 days obtained from various sources on the internet.
| Date | GMP |
| 2023 | Rs. xx (To be announced) |
| 2023 | Rs. xx (To be announced) |
| 2023 | Rs. xx (To be announced) |
| 2023 | Rs. xx (To be announced) |
API Holdings Limited Subscription Data
The details will be available during the IPO issue opens for subscription.
| Date | QIB | NII | Retail | Employee | Total |
| Day – 1 2023 | (To be announced) | (To be announced) | (To be announced) | (To be announced) | (To be announced) |
| Day – 22023 | (To be announced) | (To be announced) | (To be announced) | (To be announced) | (To be announced) |
| Day – 32023 | (To be announced) | (To be announced) | (To be announced) | (To be announced) | (To be announced) |
Understand here how to invest in an IPO.
API Holdings Limited Promoters
As per the DRHP, PharmEasy doesn’t have identifiable promoters.
API Holdings Limited Financials
Key financials of API Holdings Limited Ltd for the last two financial years FY21, and FY20 is under
| Details | FY- 2021 | FY- 2020 |
| Total Assets | Rs. 4905.3 cr | Rs. 572.4 cr |
| Total Revenue | Rs. 2360.6 cr | Rs. 737.4 cr |
| Profit After Tax | Rs. – 641.3 cr | Rs. – 335.2 cr |
| Net Worth | Rs. 3439.3 cr | Rs. 246.2 cr |
| Reserves and Surplus | Rs. 3319.3 cr | Rs. 236.7 cr |
| Total Borrowing | Rs. 232.1 cr | Rs. 152.6 cr |
The revenues from operations of PharmEasy have grown in the last two years from Rs. 737 cr to Rs. 2360 cr. But the net losses have also grown from Rs. 335 cr to Rs. 641 cr during the same period.
The net worth has also increased from Rs. 246 cr in FY 2020 to Rs. 3439 cr in 2021. In the past two years API Holding’s long-term borrowings grew from Rs. 152 cr to Rs. 232 cr.
API Holdings Limited Peer Comparison
There are no listed companies in India that are comparable in all aspects of business and services as that of PharmEasy.
Accordingly, it is not possible to provide an industry comparison.
API Holdings Limited IPO – Objects of the Issue
API Holdings Limited proposes to utilize the Net Proceeds from the Issue for –
#1. Repayment or Pre-payment of Borrowings
As of September 15, 2021, PharmEasy has total outstanding borrowings aggregating to Rs. 2494.7 crores. A majority of the borrowings are from Kotak Mahindra Bank and JM Financial.
The company proposes to utilize an estimated amount of Rs. 1929 crores from the IPO money to repay/pre-pay the borrowings.
#2. Funding Organic Growth
PharmEasy plans to expand organically through marketing and promotion activities, developing and operating supply chain infrastructure and fulfillment, and investing in technological infrastructure.
The company proposes to fund organic growth for an estimated amount of Rs. 1259 crores.
#3. Funding Inorganic Growth Through Acquisition
PharmEasy proposes to utilize Rs. 1500 crores towards funding inorganic growth initiatives such as increasing our holding in our Subsidiaries, or strategic investments, or acquisitions that are consistent with their business objective
In the past API Holdings has acquired –
- AHWSPL India Pvt Ltd
- MedLife International
- Anka Medical Pvt Ltd
- Thyrocare Technologies
- Marg ERP Ltd.
#4. General Corporate Expenses
Rest of the amount the company intends to use for General corporate purposes for refurbishment, meeting exigencies and expenses incurred by the company in the ordinary course of business such as corporate overheads and employee benefit expenses.
API Holdings Limited Issue size
Rs. 6250 crores. (Any changes in issue size will be updated later)
API Holdings Limited IPO? Is it Worth?
API Holdings is India’s largest digital healthcare platform (based on GMV of products and services sold for the year ended March 31, 2021).
As of FY 2021, API Holdings’ total gross merchandise value was Rs. 78.65 billion. Through the PharmEasy app, 3.4 million eConsultations were conducted.
The company operates on an integrated business model with stakeholder relationships across the healthcare value chain.
API Holdings has a recognized PharmEasy brand, relies on a technology-driven approach and has a track record of acquiring and integrating businesses.
Their strength lies in scaled supply chain capabilities and resilient business models with scale and improving financial metrics.
API Holding’s revenue from operations grew by 249.8% to Rs. 2335.2 crores in Fiscal 2021 from Rs. 667.5 crores in Fiscal 2020. The EBITDA losses have also improved from (57.9)% in Fiscal 2020 to (24.4)% in Fiscal 2021.
But the company is having net losses of Rs. 335 cr in FY 2020 that increased to Rs. 641 cr in FY 2021. The return on net worth is also negative for the past two years.
Key Risk –
- The operation of the PharmEasy marketplace is done by Axelia. Axelia is 100% owned by Aarman Solutions Private Limited, and API Holdings own 19.99% equity interest in Aarman Solutions Private Limited but owns the PharmEasy brand.
- Failure to operate the PharmEasy marketplace successfully could materially and adversely affect the business, cash flows and results of operations.
- The company has a limited operating history, in the digital healthcare industry, and have made recent significant acquisitions. The company may fail to evaluate the risks and challenges.
