PharmEasy May Have to Rework IPO Valuation

February 18, 2022

A new-age online pharmacy, PharmEasy feel the pressure of broader market rout, may have to readjust its valuation it was aiming for through a public offering. in the grey market, its shares are currently being traded anywhere between Rs 70 and Rs 80, significantly lower than over Rs 100 earlier this year. PharmEasy parent API Holdings is yet to get final clearance from Sebi on its IPO and is also reconsidering its IPO launch time. Unlike Delhivery and Oyo Hotels & Homes, its IPO is fully through primary share sale and doesn’t have an OFS (offer for sale) component. It filed the draft IPO papers in November to raise Rs 6,250 crore by issuing only new shares. The company was last valued at $5.4 billion and was aiming at an IPO valuation of around $7-8 billion. “It (grey market pricing) signals the current nervousness on tech IPOs and valuations. Before Paytm IPO, PharmEasy’s secondary shares were available at Rs 120-130 as well. They continue to be in talks with marquee investors for anchor slots. Now, at what price it happens remains to be seen but there is of course a correction in tech stock. It is yet to get Sebi’s nod for its proposed IPO and will only finalise pricing after the nod. The firm is expecting the clearance this month. Even then, the issue launch is likely to be moved to next financial year. It was planning to list on Indian bourses within this financial year.

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