The strong propulsion of India’s initial public offering (IPO) market is predicted to go on as the market regulator authorized draft papers for three more companies. These firms that got the green flag were API Holdings Ltd, the parent of online pharmacy PharmEasy, Wellness Forever Medicare Ltd and CMR Green Technologies Ltd.
API Holdings documented draft papers with SEBI in November 2021 to lift Rs 6,250 crore via an IPO. The income from the issue will be used to repay debt, fund organic and inorganic expansion opportunities via acquisitions and other strategic endeavours. The founders and the investors are not trading shares in the IPO.
API Holdings is also analyzing the option of a pre-IPO fundraise via private sequence to the tune of Rs 1,250 crore. If the pre-IPO round is done, it will decrease to the amount from the IPO issue size, the DRHP announced.
However, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 require every issuer, being an unregistered firm and was of making an initial public offer and a listed firm voracious of making a rights issue for a value exceeding Rs. 50 crore on a public offer, to file a draft request document with SEBI through a merchant banker(s). The merchant banker(s) correspond with SEBI on behalf of the issuer.
