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  3. API Holdings valuation plummets 90% following oversubscribed rights iss…

API Holdings valuation plummets 90% following oversubscribed rights issue

31 Oct 2023

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Key Takeaways

  • Valuation Plunge: API Holdings' Worth Falls to $500 Million Post ₹3,500 Crore Rights Issue

  • Debt-Targeted Move: Purpose of the Valuation Drop to Fulfill Goldman Sachs Obligations Gains Investor Support

  • Profitability Focus: Despite Reduced Valuation, API Holdings Aims to Achieve Profitability by April 2023

  • Valuation Plunge: API Holdings' Worth Falls to $500 Million Post ₹3,500 Crore Rights Issue

  • Debt-Targeted Move: Purpose of the Valuation Drop to Fulfill Goldman Sachs Obligations Gains Investor Support

  • Profitability Focus: Despite Reduced Valuation, API Holdings Aims to Achieve Profitability by April 2023

pharmeasy unlisted shares

API Holdings (Pharmeasy)

-8.09%

Expert Analysis

API Holdings' Valuation Falls to $500 Million Post Oversubscribed Rights Issue, Focuses on Profitability by April 2023

Expert Analysis:

  • API Holdings, parent to health tech firms like PharmEasy and Thyrocare Technologies, saw its valuation plummet by 90%.

  • A ₹3,500 crore rights issue set the share price at ₹5, reducing the company's worth to $500 million from its peak of $5.6 billion.

  • This was primarily to service debt to Goldman Sachs, a move supported by key investors.

  • Despite the sharp valuation drop, API Holdings maintains confidence in future profitability, targeting April 2023 for profitability with an estimated cumulative EBITDA of ₹60 crore.

Publisher:investing.com