Thu.Aug 5th , Aug 2021 12:11:17 PM
PharmEasy secures $300Mn funding, to finance acquisition of Thyrocare

 

  • The online drug store is planning to make an initial public offering (IPO) within 6 to 18 months
  • Pharmeasy currently has a market capitalization of $4 billion.

Indian online pharmacy and medical store, PharmEasy has seized $300 million from its current investors, with plans to finance the takeover of diagnostics company, Thyrocare. According to Siddharth Shah, CEO of PharmEasy’s parent company, API Holdings, the online drug store is planning to make an initial public offering (IPO) within 6 to 18 months after its acquisition of Thyrocare

Reportedly, Kotak Investment Banking and JM Financial are expected to work on the IPO. In addition, the two banks have assisted Shah on the Thyrocare deal. Existing investors that took part in the financing round include Prosus (formerly Naspers), Facebook co-founder Eduardo Sevarin's B Capital, Singapore's Temasek, and Think Investments.

According to Shah, the funding round included new investor from Kotak Group's private equity arm. He also stated that Tiger Global is likely to increase its investment in the company. Thyrocare promoter A Velumani is said to be investing Rs 1,500 crore in the e-pharmacy business as part of the deal for a 5% share.

For the record, PharmEasy purchased a 66.1 percent share in Thyrocare Technologies for Rs 4,546 crore in June 2021, making it one of the largest acquisitions in the Indian diagnostics business. Currently, Pharmeasy has a market capitalization of $4 billion.

The share price of Thyrocare technologies was down over 3% following the announcement of the acquisition. The stock opened at Rs 1,395.05, down Rs 53.00, or 3.66 percent, from its previous close. It has traded between a high of Rs 1,445.10 and a low of Rs 1,377.70 during the day. Since the last year, its stock price has increased by nearly 176 percent

Source Credit - https://www.moneycontrol.com/news/business/pharmeasy-raises-additional-300-million-from-investors-aims-for-ipo-in-6-18-months-7095711.html

By Shreya Bhute

With corporate exposure in software and marketing, Shreya was always intrigued by content development. Having pursued her graduation in I.T. engineering, she works as a content writer for people.partilepep.com and jots down news articles across distinct domains including technology, business and healthcare.