PharmEasy parent API Holdings withdraws DRHP for IPO, to consider rights issue

API Holdings, the parent company of PharmEasy, has withdrawn its draft red herring prospectus (DRHP) for an initial public offering.

The company said in a notice that it was withdrawing the DRHP, which was filed with the Securities Exchange Board of India on November 9, 2021, due to “market conditions” and “strategic considerations”.

API Holdings said that it is committed to its growth objectives and is considering a “rights issue” to raise capital. “Shareholders of the company will receive the letter of offer inviting them to participate in the rights issue on the terms which will be approved by the board,” it said, in the notice to shareholders.

The type of instrument being considered is compulsory convertible preference shares (CCPS). The issue price is expected to be around Rs 100 per CCPS. The rights issue will be open for a period of 30 days, starting from on or around the first week of September, according to the notice.

PharmEasy offers a smartphone-based application which helps in connecting users with pharmacies facilitating deliveries.