SEBI approves three more IPOs, including API Holdings Ltd

The strong momentum in India's initial public offering (IPO) market is expected to continue with the market regulator approving draft papers for three more firms.

These companies that got the go-ahead were API Holdings Ltd, the parent of online pharmacy PharmEasy, Wellness Forever Medicare Ltd and CMR Green Technologies Ltd.

API Holdings filed draft papers with SEBI in November 2021 to raise Rs 6,250 crore via an IPO. The proceeds from the issue will be used to repay debt, fund organic and inorganic growth opportunities via acquisitions and other strategic initiatives. The founders and the investors are not selling shares in the IPO.

API Holdings is also exploring the option of a pre-IPO fundraise via private placement to the tune of Rs 1,250 crore. If the pre-IPO round is done, it will reduce the amount from the IPO issue size, the DRHP said.

In October 2021, Wellness Forever Medicare Ltd, a pharmacy chain backed by Adar Poonawalla, filed draft papers, where its leading shareholder Serum Institute of India (SII) will sell most of its shares. The IPO consists of a fresh issue of Rs 400 crore and an offer for sale of upto 16.04 million shares from existing shareholders and promoters.

Wellness Forever was founded by Ashraf Biran, Gulshan Bakhtiani and Mohan Chavan in 2008. Biran and Bakhtiani are selling up to 720,000 shares each, while Chavan is selling around 1.2 million shares.