PharmEasy likely to file draft papers for IPO by October

Online pharmacy chain PharmEasy is preparing to file its draft papers by October before coming out with an IPO (Initial Public Offering) later in the fiscal year. 

The development comes at a time when the company's talks with Japan's SoftBank for a new fundraise round have fizzled out. 

PharmEasy's IPO plans are in progress but it is still in talks with new investors, negotiating a fundraise of $200-$300 million at a valuation of approx. $5.6 billion, sources told ET. 

Also Read: PharmEasy gets $300 mn funding; to use it for Thyrocare deal

API Holdings, the parent company of PharmEasy, was valued at $4.2 billion in June. Meanwhile, it couldn't be ascertained immediately who the potential new investors were and if such an investment would conclude before it files the Draft Red Herring Prospectus (DRHP) with capital markets with the SEBI (Securities and Exchange Board of India). 

API Holding is currently working with Kotak Investment Banking and JM Financial for the DRHP, as the two banks had handled its purchase of diagnostics chain Thyrocare in June. 

During the last few months, the company has raised more than $650 million from investors such as B Capital, Prosus (formerly Naspers), TPG, and others.

Before the IPO, PharmEasy wants to set a new valuation benchmark.

Also Read: SoftBank in talks to invest in PharmEasy parent API Holdings

"They are looking to submit IPO papers by October and then list in the next couple of months. It may spill over to next year, but the aim is to list before the end of the current financial year," another source told the publication.

The talks between SoftBank and PharmEasy, which have been in progress over the last few months, are stuck since the latter's promoters are seeking a valuation of well over $5 billion.