Sebi clears PharmEasy’s Rs 6,250 cr IPO

Bangalore: PharmEasy’s parent firm API Holdings has received approval from market regulator Securities and Exchange Board of India for the initial public offering of the online pharmacy.

Mumbai-based API Holdings had in November filed its draft IPO document to raise Rs 6,250 crore through sale of primary shares. The existing shareholders are not planning to sell the shares.

SEBI’s nod for the IPO of the PharmEasy parent comes at a time when the new age companies are witnessing a steady decline in their share prices after going public last year. Shares of Paytm, Nykaa, Policybazaar and CarTrade touched new lows during trading hours on Monday. The share price of Paytm’s parent company One97 Communications is now down more than 60% from its high, while Nykaa is down 42% from its high.

As for PharmEasy, it is still unclear whether its IPO will take place by March or it will spread over the next financial year. ET reported on February 18 that PharmEasy may have to reconsider the valuation of its IPO due to a broader recovery in markets globally and in India. Startups have also started seeing an improvement in valuations in the discussion of their fundraise.

PharmEasy’s final value was $5.6 billion and was aiming for an IPO valuation of around $7-8 billion. It closed a $350 million pre-IPO funding round in October, bringing its total funding to nearly $1 billion in 2021.

According to a recent report by Bernstein Research, PharmEasy accounts for half of the gross merchandise value of online pharmacies, compared to 16% for Tata-owned 1mg and 15% for Reliance Industries’ Netmeds.

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ET reported on February 10 that hospitality startup Oyo Hotels & Homes was looking to cut the size of its IPO and was likely to reconsider its valuation for a public share sale. Its IPO plan is yet to get final approval from SEBI.

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