Parent company of Pharmeasy passes resolution to increase authorised share capital, reports suggest

• ByStartupStory     |    July 8, 2023

The board of Api Holdings Limited, the parent company of PharmEasy, has approved a resolution to increase the authorized share capital of the online drugstore. The proposed increase, subject to approval from equity shareholders, will raise the authorized share capital to Rs 3,500 crore. This capital will be divided into 3,000 crore equity shares and 500 crore preference shares, both with a face value of Re 1 each.

The board of PharmEasy has informed its shareholders about this proposed increase in authorized share capital. Shareholders will have the opportunity to cast their votes on this matter, with the final date for voting set for August 5, as reported by The Economic Times.

This development follows the company’s intention, as reported earlier, to raise Rs 2,400 crore through a rights issue. The funds raised from the rights issue will be used to repay a loan from Goldman Sachs. The rights issue will be led by TPG and Temasek, current shareholders of PharmEasy.

The upcoming rights issue by API Holdings will offer new shares at a discounted price of Rs 5 per share, representing a substantial 90% discount compared to its previous fundraising round. This discounted price is expected to contribute to a valuation range of $500 million-$600 million for the company.

PharmEasy, a healthtech company founded in 2015 by Dharmil Sheth and Dhaval Shah, offers a wide range of services, including wellness tools, consultations, diagnostic services, radiological testing, and treatment options. The company achieved unicorn status in April 2021, with a valuation of $1.5 billion. In its efforts to expand its offerings and market presence, PharmEasy acquired a majority stake of 66% in Thyrocare, a publicly listed laboratory testing company.

The proposed increase in authorized share capital reflects the company’s commitment to growth and its strategic plans for the future. Shareholders will play a crucial role in determining the outcome of this resolution and shaping the future of PharmEasy.

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