API Holdings valuation plummets 90% following oversubscribed rights issue

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.