PharmEasy IPO - Details

The parent company of PharmEasy, API Holdings, is seeking regulatory approval to float an initial public offering (IPO). It hopes to raise Rs. 6,250 crores through a fresh issue of shares. The company also plans to sell shares held by existing investors through a separate offer for sale. The retail investor category will be allotted 10% of the IPO's shares, while qualified institutional buyers will be allotted 75%. Other non-institutional investors will be allotted 15% of the IPO's shares.

Issue Type

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Listing at

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IPO Price Band

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Face Value

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Market Lot

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Minimum Order Quantity

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Issue Type

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Listing at

To be updated

IPO Price Band

To be updated

Face Value

To be updated

Market Lot

To be updated

Minimum Order Quantity

To be updated

Listing at NSE, BSE

Important Dates for PharmEasy IPO

Investors who are interested in participating in this initial public offering of PharmEasy must take note of the following important dates.

IPO opens on To be updated
IPO closes on To be updated
Basis of Allotment publication date To be updated
Credit of shares to Demat Account To be updated
Initiation of Refund To be updated
IPO listing To be updated

View all upcoming IPOs

About PharmEasy

PharmEasy is a healthcare platform for consumers that offer online medicines, diagnostic tests, and consultations with doctors. Dharmil Sheth and Dr Dhaval Shah founded this company back in 2015. The parent company API Holdings Limited undertakes this firm's business. PharmEasy’s supply chain capabilities, technology, and proper understanding and knowledge of the dynamic interplay among the various sub-segments of India's healthcare market make the firm stand out.

The PharmEasy platform provides consumers with digital tools and information on illness and wellness. Further, it offers teleconsultation services and delivers diagnostic tests and treatment protocols, including products and devices. This, in turn, enables API Holdings to reach a broad base of shareholders across this nation. In addition, the company is now set to float a public issue to list its shares on the bourses and awaiting SEBI’s approval.

Objectives of PharmEasy IPO

PharmEasy aims to raise Rs. 6,250 crores through an initial public offering (IPO). Further objectives of this initial public offering are stated below:

  • Repayment or prepayment of existing borrowings will be made using Rs. 1,929 crores.

  • Rs. 1,259 crores will be used to fund the initiatives for organic growth.

  • Further, Rs. 1,500 crores will be used to aid inorganic growth. This growth is projected to be obtained through various strategic initiatives and acquisitions.

  • The leftover amount will be used as support for general corporate purposes.

Why Should I Invest in PharmEasy IPO?

  • PharmEasy provides a value proposition to all stakeholders. The company services 87,194 pharmacies, 3,261 wholesalers, 4,617 clinics and prescribing doctors and 926 hospitals. The online marketplace comprises 25 million registered users.
  • This firm provides teleconsultation services to consumers who use its marketplace to fulfil their prescription needs. API Holding Limited uses this marketplace as a channel to offer diagnostic tests and chronic disease management services.
  • PharmEasy is the largest digital brand in India to sell healthcare services and pharma products. The company licensed the brand “PharmEasy” to Axelia to operate the company’s marketplace in India. They also offer franchisor services such as marketing, fulfilment, and digital enablement for offline pharmacies owned and operated by franchisees.
  • The company uses modern technologies, including LAMP, J2EE, MEAN stacks, and new-age programming constructs. The firm has also developed several custom algorithms with the help of data science models, AI/ML techniques, and specialised workflows to support its business.
  • PharmEasy acquires and processes huge amounts of healthcare-related data daily. This data helps the company assist the stakeholders in making better decisions. Further, the data also assists in optimising their strategies to meet market demand and understanding supply trends.
  • The M&A team of this company works to evaluate opportunities for mergers and acquisitions in the fragmented healthcare market of this nation. To consolidate the fragmented market and expand into new areas, this team has sought to acquire businesses that have complementary or synergistic strengths. This consolidation has further increased value for the stakeholders of PharmEasy across the healthcare ecosystem.
  • PharmEasy considers its supply chain an asset and focuses on delivering real-time visibility into the company’s healthcare partners' demand patterns and granular supply. The firm also provides a live and dynamic view of its logistics network along with delivery timeframes for incoming orders. Utilising data from various segments of the physical supply chain, the company predicts delivery times.
  • The PharmEasy marketplace performance during the COVID-19 pandemic demonstrated the resilience of its business model. The demand surge during the COVID-19 pandemic nearly doubled the active customer base to almost three million users within a few months. Among the other achievements of this firm, PharmEasy has also expanded its network of pharmacies to 18,587 areas or pin codes.

Financial Highlights

he financial highlights of PharmEasy, as listed in its DRHP submitted to the Indian market regulator SEBI, are as follows:

Financial Year Total Assets in Millions Total Revenue in Millions Profit After Tax in Millions
FY 2021 Rs. 49,053.44 Rs. 29,809 (Rs. 6,410)
FY 2020 Rs. 5,724.75 Rs. 10,840 (Rs. 3,350)

How to Apply for PharmEasy IPO?

There are two methods that a first-time investor can follow for experiencing an effortless trading process. They include:

UPI

Investors with a UPI ID can invest in PharmEasy IPO using the UPI infrastructure for payments. First, they should link their bank accounts to their respective UPI IDs. Then, they have to link their UPIs to the Angel One platform to invest in the IPO or other offerings. Further, they can also block their investment in this IPO if required via their UPI app.

Demat Account

Investors who want to place bids on this initial public offer of PharmEasy can do so through their Demat accounts. They can open a Demat account through the web portal or mobile application of Angel One without any charge. An investor interested in placing a bid for this initial share sale can carry it out on the issue date after logging in to his or her Demat account.

PharmEasy IPO – Noteworthy Highlights

The following are the noteworthy highlights of PharmEasy for interested investors to consider:

  • This company will continue to develop in-house capabilities and partnerships to make its services increasingly interconnected and interdependent. PharmEasy sees vast potential for cross-promotion with other players in the healthcare industry, using its data and technology resources.
  • The firm plans to optimise its operations by investing time, capital and effort to ensure its accuracy, reliability and speed across the nation.
  • PharmEasy intends to continue cultivating its network of clinics, doctors, hospitals, pharmaceutical companies, pharmacies, wholesalers, and diagnostic labs, among other key players in the healthcare industry.
  • The founders of this startup plan on using technology to make medical decisions easier for physicians, improve patient care and help patients adhere to their treatment regimens. Using a set of platforms, the company is conducting pilot programs that show promise in collaborating with patients and improving the quality of health care.
  • PharmEasy also intends to continue making strategic acquisitions and investments in areas that will deepen its services across geographies and expand its private-label offerings and technology.
  • The firm believes that digital products and services can transform customer behaviour. They shall continue to design new digital solutions and deliver excellent customer experiences across all products and services.
  • Its granular data insights empower the company to support pharmaceutical launches and other initiatives by hosting pilots with some of India's leading pharma companies.
  • PharmEasy uses a scalable cloud-based technology platform to ensure that its business grows easily and efficiently. This reduces the cost of infrastructure and maintenance.

PharmEasy IPO SWOT Analysis

Strength

    • PharmEasy has the capability to construct an all-in-one healthcare integrated platform.

    • It has the ability to develop a supply chain that is first in line with healthcare and is custom-built.

    • This company has strived as a trusted partner of choice for its stakeholders.

    • PharmEasy focuses more on outcome orientation than on transaction orientation for the customers.

    • The firm pursues strategic acquisition and investments for brand development and capitalisation growth.

    • PharmEasy strategises and constantly innovates to deliver high levels of customer experience.

    • The company can expand its product portfolio, service offering, and private label with consistent funding.

Weakness

    • The sustainability of PharmEasy depends on how the company maintains its brand image and reputation.

    • The company has already incurred losses and negative cash flows, which can even follow in the future.

Opportunity

    • The future growth of PharmEasy depends on its portfolio expansion, service offerings, and significant private labels.

    • The business growth of this firm comes in line with the implementation of strategic acquisitions in expanding the product line and entering new geographies.

    • Customer needs can be fulfilled easily with all in one healthcare platform development.

Threats

    • The business of PharmEasy can be hampered by changing e-commerce laws and regulations.

    • Compliance requirements in the healthcare field can affect the business of this firm.

    • The digital platform is totally dependent on customer engagement.

    • The frailty in maintaining a proper technological infrastructure can also hamper the business growth of PharmEasy.

Competitive Analysis: Market Peers

he table below shows the top market competitors of PharmEasy and their financial performance.

Name of Company

Revenue

Netmeds

$ 10.2 millions

1mg

$ 6.5 millions

Practo

$ 16.5 millions

Frequently Asked Question

Why is PharmEasy floating an IPO?

PharmEasy is all set to float its IPO to raise Rs. 6,250 crores to fund the existing borrowings and use the leftover funds to aid in different corporate purposes.

Is PharmEasy listed in the stock market?

In 2021, PharmEasy bought 66% shares of Thyrocare. This move made it the first company to be listed in the stock market among any Unicorn in India.

Is PharmEasy generating revenue?

As per the various reports, the company has seen a growth of 220% in FY 2021. In this fiscal year, PharmEasy collected a revenue of Rs. 2,360 crores, which is massive when compared to Rs. 737.4 crores was collected in the fiscal year 2020.

What does PharmEasy do?

PharmEasy runs a healthcare e-commerce app for consumers with a wide range of facilities. Some of its significant resources include home delivery of consumer health products across various prescriptions, OTC pharmaceutical, diverse diagnostic test services, and consultation services to cater to various healthcare needs.

Is PharmEasy a startup company?

PharmEasy is a digital healthcare startup company that caters to the health needs of people. They offer services such as sample collection of diagnostic tests, teleconsultation and consumer healthcare product deliveries.

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