The company may, in consultation with the BRLMs (book running lead managers), consider further issue of equity shares by way of a private placement of equity shares for cash consideration aggregating Rs 1,250 crore, prior to filing of the red herring prospectus (RHP) with the RoC, API Holdings said in its DRHP.
If the pre-IPO placement is undertaken, the issue size will be reduced by the amount raised from the pre-IPO placement and the minimum issue size would constitute at least 10 per cent of the post-issue paid-up equity share capital of the company.
The company intends to utilise the net proceeds for prepayment or repayment of all or a portion of certain outstanding borrowings availed by it or and 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 another Rs 1,500 crore on inorganic growth opportunities through acquisitions and other strategic initiatives.
“We intend to continue to invest in three core areas for the growth of our business which include a) marketing and promotional activities to increase awareness about our offerings and brands, b) supply chain infrastructure and fulfilment, and c) technology capabilities and infrastructure,” the company said.
“Further, acquiring and integrating companies, teams and business models in the healthcare value chain is one of our key business focus areas, and we intend to continue to pursue strategic investments and acquisitions which are complementary to our businesses. We have made these investments in the past, and we expect these to continue to be critical for the growth of our business in the future,” it added.
The company said it has funded growth through owned funds as well as borrowings and is intended to deleverage at a consolidated level by repayment or prepayment of some of its borrowings.
With this, PharmEasy will join a slew of startups that came up with public issues this year including Paytm, Nykaa and Policybazaar.
