Manipal Group, existing investors to pump in ₹2500 crore in Pharmeasy

livemint.com:

₹2,500 crore to retire the senior debt it had raised from Goldman Sachs, said two people with knowledge of the development. While ₹1,000 crore will come from Manipal Group’s Ranjan Pai’s family office, existing investors in Pharmeasy are expected to pump in the rest, they said. The company counts Prosus, Temasek, B Capital, Tiger Global, Orios, Kotak PE, among others, as its investors.

Pharmeasy is now being valued at $500-600 million, said one of the person cited above, adding that the company will be the first unicorn to take a major knock down in its valuations. In 2021, when it last raised primary capital, the e-pharmacy was valued a whopping $5.6 billion. The investment will come through a rights issue that the company is planning, which will help it raise fresh capital.

This would be the second rights issue in a year. In October 2022, existing investors were invited to subscribe to up to ₹750 crore through convertible notes. “(Ranjan) Pai’s family office has given a term sheet of ₹1,000 crore, the company is raising another ₹1000 crore from its existing investors," the other person cited above said.

According to him, another PE firm is also in talks to pump in another ₹300 crore. As per the terms of the debt agreement, the structured loan of ₹2,280 crore from Goldman Sachs is due in 2026, but requires Pharmeasy to pay ₹25 crore in interest each quarter. It also has a payment-in-kind (PIK) component, in the range of 7.25% to 8.25%, which is due to be paid only in 2026.