A Look At the Shareholding Pattern Of IPO Bound PharmEasy

Joining the IPO bandwagon, API Holdings, which runs the healthtech unicorn PharmEasy has filed its draft red herring prospectus (DRHP) for raising INR 6,250 Cr through IPO. In a rare move, the company will issue only fresh shares and no existing investors would offload shares or exit in the proposed IPO.

Prosus (Naspers) is the largest shareholder of the Mumbai-based startup with a 12.04% stake through Naspers Ventures BV. The Dutch multinational conglomerate is the international Internet assets division of South African multinational Naspers.

Singapore based investment major Temasek holds a 10.84% stake in the company through Macritchie Investments Pte. Ltd.

The other international investment funds which have more than 5% stake in the epharma unicorn are TPG Growth V SF Markets Pte. Ltd (6.65%) and Evermed Holdings Pte Ltd (5.86%).

CDPQ Private Equity Asia Pte. Ltd (4.14%), Lightstone Fund (3.87%), TIMF Holdings (3.13%), Eight Roads Ventures (1.79%), B Capital Asia (1.64%),  Orios Venture Partners Fund (1.26%), SARV Investments Limited (1.22%) and Amansa Investments Ltd (1.02%) are the funds which has 1% – 5% stake in the IPO-bound startup.

The funds which hold less than 1% stake are Internet Fund VI Pte. Ltd (0.96%), KB Global Platform Fund (0.77%), Ivy Icon Solutions LLP (0.65%), Worldwide Healthcare Trust PLC (0.61%), Beta Oryx (0.61%) and Kotak Pre IPO Opportunities Fund (0.57%).

PharmEasy has raised a total of $1.6 Bn funds from 43 investors across 14 funding rounds.

• Surbhi Singh jointly with Universal Trustees Private Limited holds 6.70% in the company. CEO of Thyrocare, A. Velumani owns a 4.52% stake. PharmEasy had acquired a majority stake in Thyrocare in June this year.
• The family office of HNI (high net worth individual) and former academician Shivanand Shankar Manekar holds a 1.36% stake in the company.
• The cofounder and CEO Siddharth Shah holds 1.32% stake in the healthtech unicorn.
• Jasmine Bhaskar Shah and Bhaskar Prataprai Shah who are relatives of Siddharth Shah, own 1.22% shares jointly with the CEO.
• The founders of Medlife Prashant Dharamdeo Singh and Tushar Kumar hold 0.94% stake as a result of the allotment of equity shares post the acquisition of Medlife by PharmEasy in May 2021.
• Another 0.94% stake in the startup is owned by Kedar Shivanand Mankekar jointly with with his father Shivanand Shankar Mankekar.

In the DRHP, the company has said that it does not have an identifiable promoter and thereby, as per SEBI norms, there is no requirement of minimum promoter’s contribution in this issue and none of the equity shares will be locked in for an 18-month period pursuant to the issue.

The company may also proceed with pre-IPO fundraise of up to INR 1,250 Cr through private placement, it said in its draft prospectus.

As the offer would consist only of fresh issue and no offer from sale from the shareholders, the net proceeds would directly go to the company. The unicorn plans to use about 31% or INR 1,920 of the IPO proceeds towards settling part of the debt and the rest would be used for funding organic and inorganic growth initiatives. 

During the financial year ending March 21 (FY21), it posted a loss of INR 641.3 Cr, a 91% increase from INR 335.2 Cr it posted in FY 20. 

The company’s revenue soared from INR 737.4 Cr in FY 2020 to INR 2,360 Cr in FY 21, a 220% jump. Likewise, the company’s expenses widened to INR 2,980.9 Cr in FY 21, a 174.8% rise from INR 1,084.4 Cr in FY 20.

Founded in 2015 by Dharmil Sheth and Dr Dhaval Shah, PharmEasy merged with its investor entity, Ascent Health, to form API Holdings in 2019. Post the merger, Ascent Health founders: Siddharth Shah, Hardik Dedhia, and Harsh Parekh joined PharmEasy as cofounders.