PharmEasy's parent approves resolution to boost authorised share capital: Report
PharmEasy board has informed shareholders regarding the proposed increase in authorised share capital to Rs 3,500 crore, divided into 3,000 crore equity shares and 500 crore preference shares, both with a face value of Re 1 each.
The board of , the parent company of , has approved increasing the authorised share capital of the online drugstore. However, the decision is pending approval from equity shareholders, according to a report.
The process for casting votes on this matter will commence today, and the final date for it is scheduled for August 5, The Economic Times reported.
The board has informed its shareholders regarding the proposed increase in authorised share capital to Rs 3,500 crore, which will be divided into 3,000 crore equity shares and 500 crore preference shares, both with a face value of Re 1 each, the report added.
The development follows a previous Economic Times report indicating the company's intention to raise Rs 2,400 crore through a rights issue, aimed at repaying a loan from Goldman Sachs. The rights issue will be spearheaded by TPG and Temasek, PharmEasy's current shareholders.
In its upcoming rights issue, API Holdings plans to issue new shares at Rs 5 per share, offering a substantial discount of 90% compared to its previous fundraising round at around Rs 50 per share. It is expected to contribute to a valuation range of $500 million-$600 million for the company.
The healthtech company previously had a valuation of approximately $4.6 billion, indicating it is now raising funds at a valuation 90% lower than its peak, the report said.
In April 2021, PharmEasy achieved unicorn status, reaching a valuation of $1.5 billion. Two months later, the company acquired a majority stake of 66% for Rs 4,546 crore in Thyrocare, a publicly listed laboratory testing company.
Last August, the company borrowed Rs 2,280 crore from Goldman Sachs to settle a prior debt owed to Kotak Mahindra Bank, which was taken to finance the acquisition of Thyrocare.
PharmEasy, established in 2015 by Dharmil Sheth and Dhaval Shah, provides an array of services encompassing wellness tools and information, consultations, diagnostic services, radiological testing, and treatment options.
Edited by Suman Singh