It is a pharmaceutical platform, which is present in most cities in India. Its holding company is API Holding, which has already submitted documents for the IPO with SEBI. FarmEasy is planning to raise around Rs 6,250 crore from the market through an IPO. With this money, the company will settle its debt of about Rs 1929 crore and also invest in the growth of the company.
PharmEasy’s parent company withdrew the draft paper submitted for IPO, the company will now raise funds through a rights issue
FarmEasy’s parent company API Holdings has withdrawn the draft papers submitted for IPO due to the current market situation and strategic reasons.
FarmEasy’s parent company API Holdings said in a statement issued on Sunday 20 August that it has withdrawn the draft paper submitted to the market regulator SEBI for bringing an initial public offer (IPO).
FarmEasy submitted the draft papers for the IPO on November 9 last year. The company said, “The draft paper submitted for the IPO has been withdrawn due to the prevailing market situation and strategic reasons.”
Along with this, API Holdings also said that the company is committed to its future growth and expansion plan and is looking to raise funds through a ‘rights issue’.
“The rights issue is planned for September and will be open for approximately 30 days,” FarmEasy said in a statement. The instrument that will be used by API Holdings to raise the funds will be Compulsory Convertible Preference Shares (CCPS) and the issue price is expected to be Rs 100 per CCPS.
API Holdings further said, “An offer letter will be sent to the shareholders of the company inviting them to participate in the rights issue on the terms and conditions decided by the Board.”
Earlier in November last year, while submitting the draft paper for the IPO, API Holdings said that it wants to raise Rs 6,250 crore by issuing fresh equity shares. Of this, Rs 1,929 crore will be used to repay debt, Rs 1,259 crore to fund certain plans to achieve organic and non-organic growth, and about Rs 1,500 crore for acquisitions and other strategic investments.
News agency Reuters claimed in a report released last month that FarmEasy was in talks with investors to raise $200 million in funding. However, this funding could be raised at 15 percent or 25 percent less than the company’s valuation of $5.1 billion last year.
