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.
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
Autodesk continually pushing the boundaries in the Design and
Autodesk’s vision is of a better world designed and made for all. It inte
Bolstering its commitment to help build a truly self-reliant B
CP PLUS is dedicated to spreading a sense of security to every corner of In
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
AMARA RAJA POWER SYSTEMS LTD.
LAVA INTERNATIONAL LTD.
PDRL - Passenger Drone Research Pvt. Ltd.
DATA SAFEGUARD INDIA PRIVATE LIMITED
EMINENT CIO'S OF INDIA
ICONS OF INDIA
ICONS OF INDIA : RAMESH NATRAJAN
Ramesh Natarajan, CEO of Redington Limited, on overcoming ‘technolog...
Icons Of India : ASHISH KUMAR CHAUHAN
Ashish kumar Chauhan, an Indian business executive and administrator, ...
Icons Of India : Deepak Sharma
Deepak Sharma spearheads Schneider Electric India. He brings with him ...
PARTNER SPEAKERS
PSU
EESL - Energy Efficiency Services Limited
EESL is uniquely positioned in India’s energy sector to address ener...
LIC - Life Insurance Corporation of India
LIC is the largest state-owned life insurance company in India...
ITI - ITI Limited
ITI Limited is a leading provider of telecommunications equipment, sol...
VIDEOS
Top 25 Brands
Global Indian industry
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 - Satya Nadella, Chairman & CEO- Microsoft
Satya Nadella, the Chairman and CEO of Microsoft, recently emphasized ...
Indian Tech Talent Excelling The Tech World - Aneel Bhusri, CEO, Workday
Aneel Bhusri, Co-Founder and Executive Chair at Workday, has been a le...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
