PharmEasy parent seeks shareholder nod to increase authorised share capital
PharmEasy’s parent API Holdings’ board on Thursday approved a resolution to increase the company’s authorised share capital, as per a postal ballot notice issued to shareholders, a copy of which ET reviewed. It is currently pending equity shareholder approval, the process for which begins tomorrow. The last date of voting would be August 5.
The board notified its shareholders about increasing the authorised share capital to Rs 3,500 crore (about $423.72 million), divided into 3,000 crore equity shares of Re 1 each, and 500 crore preference shares of Re 1 each. A company increases its authorised share capital to pump in new money from investors. The Mumbai-based company proposed the increase ahead of its rights issue, which was initiated in order to pay off its debt to Goldman Sachs after it breached loan covenants, ET reported on Wednesday.
It had informed its board and investors that it plans to raise around Rs 2,400 crore ($291.5 million) through a rights issue at a 90% discount to its peak stock price. API Holdings is planning to issue new stock at Rs 5 per share, according to documents seen by ET. API Holdings last raised funds at Rs 50 per share in 2021.
The Mumbai-based company (which also houses Thyrocare) is expected to be valued at $500-600 million — down from the high of $5.6 billion two years ago. If the rights issue goes through at the proposed pricing, it would be among the first major down rounds for a large internet firm. A down round is when a privately held firm raises funds at a valuation lower than its previous round.
Read more on economictimes.indiatimes.com
