SEBI gives green flag to IPO of three companies
SEBI, the Indian market regulator, has given nod to IPO (initial public offering) of three companies – API Holdings, parent company of online pharmacy retailer PharmEasy; Adar Poonawalla-backed Wellness Forever Medicare; and metal recycling firm CMR Green Technologies. These three companies received observation letters from SEBI on February 16 – 17, 2022. Preliminary IPO papers were filed by these companies last year between September and November.
According to the draft red herring prospectus that was filed by the company with the regulator, API Holdings is aiming to raise through IPO Rs 6,250 crore. The offer will be the primary issuance of equity shares and does not have an OFS (offer for sale). This basically means the existing shareholders of API Holdings will not be selling their stakes.
Through the funds raised by IPO, PharmEasy which is one of the largest e-pharmacy firms in India, plans to prepay or repay the outstanding debt of Rs 1,929 crore, fund organic growth initiatives worth total of Rs 1,259 crore, pursue inorganic growth through acquisitions and other strategic initiatives worth Rs 1,500 crore, and also for general corporate purposes.
Wellness Forever Medicare
This is an omnichannel retail pharmacy which has its presence in states including Goa, Karnataka and Maharashtra. Through the IPO, company aims to raise Rs 1500 – Rs 1600 crore. The IPO includes a fresh issue of equity shares aggregating to Rs 400 crore and offer for sale up to 16,044,709 equity shares.
As part of OFS, about 7,20,000 equity shares will be offloaded by Ashraf Mohammed Biran, 720,000 equity shares by Gulshan Haresh Bhahtiani, 120,000 equity shares by Mohan Ganpat Chavan and up to 14,484,709 equity shares by other existing shareholders.
CMR Green Technologies
CMR Green Technologies is a metal recycling company. Its offer comprises fresh issuance of shares worth Rs 300 crore and an OFS of 33,414,138 equity shares by promoters and investors. OFS offering include promoters – “Gauri Shankar Agarwala who will sell 34.33 lakh equity shares, Kalawati Agarwal will offload up to 33.45 lakh equity shares and Mohan Agarwal and Pratibha Agarwal will divest up to 30.09 lakh equity shares each – and investor – Global Scrap Processors – will sell up to 1.99 crore equity shares.”