CAIT demands rejection of PharmEasy's proposed ₹6,250-crore IPO to SEBI
By MYBRANDBOOK
The Confederation of All India Traders (CAIT) has written to India’s market regulator Securities and Exchange Board of India (SEBI), seeking dismissal of PharmEasy’s initial public offering (IPO) as online pharmacies are allegedly not legal under Indian law.
The organisation - which has eight crore traders and 40,000 trading associations - has highlighted that the sale of medicine over the internet is not allowed as per the order passed by Delhi high court back in 2018.
Last month, Delhi-based South Chemists and Distributors Association (SCDA) had also written a letter to the market regulator to reject PharmEasy’s IPO citing the same reason.
CAIT has also raised concerns over PharmEasy’s acquisition of Thyrocare, a chain of diagnostic and preventive care laboratories. The organisation highlighted that the Competition Commission of India (CCI) has not yet approved the acquisition of Thyrocare.
“The sale of medicine still continues till this date against the order by the honorable high court. Despite an order from the CCI, API Holdings mentions Thyrocare as their subsidiary in the DRHP [draft red herring prospectus] submitted to SEBI,” said Praveen Khandelwal, National Secretary General of CAIT.
PharmEasy is planning to raise ₹6,250 crore in an IPO, which is purely a fresh issue. None of its existing stakeholders would be selling their shareholdings.
The company, in consultation with the bankers to the issue, may consider a private placement aggregating up to ₹1,250 crore. If such placement is completed, the fresh issue size will be reduced.
The Mumbai-based startup would use the proceeds from this IPO to prepay or repay its outstanding debt of ₹1,929 crore, the DRHP highlighted. The company will be looking to invest ₹1,259 crore to fund organic growth initiatives. It has also set aside another ₹1,500 crore would be spent on inorganic growth initiatives through acquisition and organic growth initiatives.
BREAKING NEWS
TECHNO TRENDS
India and Namibia collaborate on a payment system similar to U
Once operational, the platform will enable digital transactions in Namibia,...
Sebi issues show-cause notices to six Adani group firms
Sebi issued show-cause notices to six Adani Group firms, including Adani ...
Microsoft to build a new data centre to support Thailand's tec
Microsoft has revealed intentions to construct a regional data centre as w...
SAP launches cloud services to help Indian scaleups innovate m
SAP at SAP unveils now "GROW with SAP for Scaleups," a new cloud service d...
E-Magazine
TECHNOTAINMENT
Airtel Xstream Play strengthens regional content library, part
Bharti Airtel (“Airtel”), one of India’s leading telecommunications
ED attaches Raj Kundra, Shilpa Shetty’s Rs 97 crore worth as
The Enforcement Directorate (ED) has seized businessman Raj Kundra's pro
MOVERS & SHAKERS
UiPath ropes in Raghu Malpani as Chief Technology Officer
UiPath has announced Raghu Malpani as Chief Technology Officer. Malpani w
DigiCert names Atri Chatterjee as CMO
DigiCert has announced the appointment of Atri Chatterjee as Chief Market
OPEN YOUR EYES
INTERVIEWS
Committed to follow future roadmap with 'Make-in-India' 2.0 Vi
As technology advances, AI is used in increasingly disparate ways to help a
Elastic democratizing search with powerful AI and ML-enabled s
Elastic is always committed to staying ahead of the curve and constantly re
HOT PICK
COLORFUL rolls out an array of gaming laptops
COLORFUL launched its incredible series of COLORFUL EVOL P15 gaming laptop
Dell Technologies launches new AI-powered commercial PC portfo
Dell Technologies has launched the broadest portfolio of commercial AI lap
MAKE IN INDIA BRANDS
VERSA NETWORKS INDIA PVT. LTD.
IBALL WORLDWIDE PVT. LTD.
OPTIEMUS INFRACOM
SAMRIDDHI AUTOMATIONS PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Technology Icons Of India 2023: Rajendra Singh Pawar
Rajendra Singh Pawar is an entrepreneur and businessperson who founded...
Technology Icons Of India 2023: Roshni Nadar Malhotra
Roshni Nadar Malhotra is an Indian billionaire businesswoman and the c...
Technology Icons Of India 2023: Lt Gen (Dr.) Rajesh Pant (Retd.)
LT Gen(Dr.) Rajesh Panth (Retd.), National cyber security coordination...
PARTNER SPEAKERS
PSU
ITI Limited widening its focus area
ITI Limited is a public sector undertaking company, has manufacturing ...
RailTel connecting every corner of India
RailTel is an ICT provider and one of the largest neutral telecom infr...
CERT-IN protecting the cyber security space of India
CERT-In serves in the area of cyber security threats like hacking and ...
VIDEOS
Top 25 Brands
Value-Added Distribution
NETPOLEON SOLUTIONS
Netpoleon Group is a Value-Added Distributor (VAD) of Network Security...
SONATA INFORMATION TECHNOLOGY LIMITED
Sonata Software Limited is a leading Modernization engineering company...
SATCOM INFOTECH PVT. LTD.
Satcom Infotech Pvt. Ltd is a distribution houses in security in India...
ITFORUM 2024
WIITF 2024
CMO of the Year
WOMEN LEADERSHIP
EMINENT CIO's OF INDIA
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
