It intends to use the funds raised from the issue to prepay and repay outstanding borrowings availed by the parent and subsidiary firms. It also intends to use Rs 1,259 crore to fund organic growth initiatives. It has set aside Rs 1,500 crore for inorganic growth opportunities via acquisitions and other strategic actions.
The company will focus on core areas of growth like marketing and promotional activities to increase brand awareness, supply chain infrastructure, and technology capabilities, it said in the DRHP.
PharmEasy’s revenue from operations stood at Rs 2,335 crore for the financial year 21, jumping from Rs 668 crore in the previous year. However, the revenue declined for the first quarter of FY22 to Rs 1,197 crore.
Its net loss in FY21 was Rs 645 crore, up from Rs 335 crore in FY20. In the quarter ended June 2021, its losses declined to Rs 314 crore. Its pro forma gross merchandise value (GMV) stood at Rs 787 crore in FY21 and declined to Rs 303 crore in Q1 FY22.
GMV is the total value of merchandise sold over a given period. While pro forma GMV means the company is excluding anything it believes can obscure the accuracy of its financial outlook. It is a useful tidbit of information to assess the future aspects of a company.
API Holdings’ pro forma GMV includes the contribution from its acquisitions of Medlife, Ascent, Aknamed, and Thyrocare as if these were acquired on April 1, 2020.
Among its investors are private-equity firm TPG, tech-focused venture capital firm Naspers, and entities related to global investment group CDPQ.
Citigroup Global Markets India, JM Financial Ltd, Kotak Mahindra Capital, Morgan Stanley India and BoFA Securities India are joint book runners in API Holdings’ IPO.
(Edited by : Ajay Vaishnav)
First Published: IST
