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.
Singapore to remove One-Time Passwords from Bank Accounts
According to the Monetary Authority of Singapore, clients who utilise secur...
Is 375 million Airtel subscribers database breached?
When a hacker claims to have accessed and put up for sale a customer databa...
The government of India intends to construct a single portal f
A single portal will be launched by the Indian government to list all of it...
OpenAI offers GPT-4o, a faster model available to all users at
GPT-4o, a faster and more sophisticated AI model, is made available to all...
Icons Of India : AMIT CHADHA
Amit Chadha serves as the CEO and Managing Director of L&T Technology ...
ICONS OF INDIA : SACHIN BANSAL
Sachin Bansal is an Indian entrepreneur. He is best known as the found...
ICONS OF INDIA : RISHAD PREMJI
Rishad Premji is Executive Chairman of Wipro Limited, a $11.3 billion ...
GSTN - Goods and Services Tax Network
GSTN provides shared IT infrastructure and service to both central and...
UIDAI - Unique Identification Authority of India
UIDAI and the Aadhaar system represent a significant milestone in Indi...
EESL - Energy Efficiency Services Limited
EESL is uniquely positioned in India’s energy sector to address ener...
Indian Tech Talent Excelling The Tech World - George Kurian, CEO, Netapp
George Kurian, the CEO of global data storage and management services ...
Indian Tech Talent Excelling The Tech World - Aman Bhutani, CEO, GoDaddy
Aman Bhutani, the self-taught techie and CEO of GoDaddy, oversees a co...
Indian Tech Talent Excelling The Tech World - Lal Karsanbhai, President & CEO, Emerson
Lal Karsanbhai, President and CEO of Emerson, assumed the leadership i...