API Holdings Ltd., owner of India’s largest online pharmacy PharmEasy, has withdrawn its preliminary filing for an initial public offering, citing market conditions and strategic considerations.
The Mumbai-based company is planning to raise funds via a rights issue for convertible preference shares, according to an announcement to investors seen by Bloomberg News. The price is expected to be 100 rupees ($1.25) per share and is set to open around the first week of September, the document showed.
India’s IPO market has slowed this year after 2021 saw the largest amount of funds raised in at least a decade. Just $5.2 billion has been raised in the country so far this year, down 47% from the same period in 2021, according to Bloomberg calculations.
PharmEasy provides a range of services spanning digital tools and information on wellness, teleconsultations, diagnostic and radiology tests and treatment deliveries, according to the draft red herring prospectus it filed in November with the Securities & Exchange Board of India. Its investors include TPG and Temasek Holdings Pte.