Pharmeasy's parent company approves resolution to increase authorized share capital, says Report

Api Holdings Limited, the parent company of Pharmeasy and Thyrocare, has reportedly received approval from its board to increase the authorized share capital of the health tech giant.

However, as per an ET report, the decision is still pending approval from equity shareholders. The voting process on this matter is set to begin today and will continue until August 5.

According to the report, the board has notified its shareholders about the proposed increase in 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.

This development follows a previous report by The Economic Times, which revealed the company's plan to raise Rs 2,400 crore through a rights issue. The funds raised from the rights issue will primarily be used to repay a loan from Goldman Sachs. The rights issue will be led by TPG and Temasek, who are currently shareholders of PharmEasy.

API Holdings looks to issue new shares at Rs 5 per share, offering a significant discount of 90% compared to its previous fundraising round, which was conducted at around Rs 50 per share.

Following this, The startup's valuation would range around $500 million-$600 million, showing a 90% decline from its previous $4.6 billion valuation.

In April 2021, PharmEasy achieved unicorn status after reaching a valuation of $1.5 billion. Two months later, the health tech startup acquired a majority stake of 66% in Thyrocare, a publicly listed laboratory testing company, for Rs 4,546 crore.

Last August, PharmEasy borrowed Rs 2,280 crore from Goldman Sachs to settle a previous debt owed to Kotak Mahindra Bank. This debt had been taken to finance the acquisition of Thyrocare.

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