The issue will only be a primary share sale of shares and the entire proceeds will go to the company
Digital healthcare company API Holdings has filed preliminary papers with capital markets regulator Sebi to raise Rs 6250 crore through an initial share sale.
The issue will only be a primary share sale of shares and the entire proceeds will go to the company. There will not be any offer for sale by existing investors in the IPO, showing a great deal of commitment and belief by existing shareholders, draft red herring prospectus (DRHP) filed with SEBI.
Additionally, the company, in consultation with the bankers to the issue may consider a private placement aggregating up to Rs 1250 crore. If such placement is completed, the fresh issue size will be reduced.
API Holdings’s pre-IPO round that closed in October 2021, was oversubscribed significantly, with participation from Singapore-based Amansa Capital, US-based hedge fund Janus Henderson, Global Healthcare Focussed Asset Manager OrbiMed, Tech Focussed Steadview Capital, Abu Dhabi’s sovereign wealth fund ADQ, Large Global Asset Manager Neuberger Berman to name a few, and was reportedly priced at US $5.4Bn. It was reported that the Founders & Employees of API Holdings participated significantly in this round, showing great belief and commitment in the Company’s prospect.
The five founders of API Holdings, Siddharth, Hardik, Harsh, Dharmil and Dhaval are childhood friends, commonly referred to as the Ghatkopar Gang, coming from the suburb of Ghatkopar in Mumbai. The journey of the API Holdings founders that started from DialHealth in 2012, a digital and phone order platform that allowed access to teleconsult, diagnostic lab pickups and the medical product delivery has come a long way to now become India’s largest digital healthcare platform.
API Holdings had most recently acquired 66.1 per cent in Thyrocare Technologies from its founder A Velumani for Rs 4,546 crore (at Rs 1,300 per share) through Docon Technologies which is a 100 per cent subsidiary of API and in September 2021, they acquired a majority of Bengaluru based tech-focussed, healthcare supply chain startup Akna Medical (Aknamed) that is backed by Lightrock for an undisclosed sum.
