homestartup NewsPharmEasy plans to raise Rs 2,000 3,000 crore via rights issue, accepts Manipal Group's offer: Exclusive
PharmEasy plans to raise Rs 2,000 - 3,000 crore via rights issue, accepts Manipal Group's offer: Exclusive
API Holdings needs immediate cash infusion of around Rs 2,500 crore to repay the debt to Goldman Sachs, to which it had pledged shares of Thyrocare as collateral. In case of breaching the debt covenant, PharmEasy will be left with few options, a source indicated.
API Holdings, the owner of PharmEasy, in an all-investor meeting on July 17 has agreed to do a rights issue of Rs 2,000 - Rs 3,000 crore, sources with direct knowledge of the matter told CNBC-TV18. The sources further said that the PharmEasy parent has also approved the Manipal Group's proposal to invest the shortfall amount if all investors do not end up participating.
The board of API Holdings is said to have approved Manipal Group's binding offer but only to the tune of non-participation by existing shareholders. Manipal Group's family office has offered to invest up to Rs 1,300 crore, sources said.
A section of investors at PharmEasy had reservations on the sale of shares to the Manipal Group at low valuations. As a solution, a consensus is built on giving the first chance to existing shareholders to invest first on a pro-rata basis, according to three independent sources with knowledge of the developments.
API Holdings needs immediate cash infusion of around Rs 2,500 crore to repay the debt to Goldman Sachs, to which it had pledged shares of Thyrocare as collateral. In case of breaching the debt covenant, PharmEasy will be left with few options, a source indicated.
Depending on the amount of funds raised, the post-money valuation of the company is expected to be around Rs 6,000 to Rs 7,000 crore, a significant drop from its previous fund raise, which valued PharmEasy at $2.8 billion. The company's valuations saw a peak at $5.6 billion a few years earlier. Since then, an overall correction in the digital commerce space, along with the funding winter has resulted in a steep drop in overall valuations to the present funding round.
As part of the funding discussions, it has also been clarified that there will be no liquidation preference, but the promoter shareholding will get diluted to around 4.5-5 percent. “Founders can be incentivised with ESOPs based on performance metrices as part of the deal” a source indicated.
Prosus Ventures, Temasek, TPG Growth, CDPQ rank among PharmEasy's top investors.
Neither PharmEasy nor the Manipal Group offer any comment on CNBC-TV18's query on the fund raising plan.
(Edited by : Hormaz Fatakia)
First Published: Jul 18, 2023 7:06 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM