Business Profile of API Holding Limited
API Holding Limited is a holding company that offers digital healthcare management products and services through its multiple platforms. API started its journey in 2012 and is currently India's largest digital healthcare platform with ₨ 43.19 billion revenue from its operations. The company provides its healthcare services through its online as well as its offline platforms which include Docon, Thyrocare, PharmEasy, Retailio, and Redbook. These businesses offer different services and products to customers in the market. API Ltd. focuses on utilizing a custom-built technology platform to expand its reach or connect various stakeholders in the healthcare ecosystem. The services which are provided by the company are procurement & logistics, Credit solutions, Digital healthcare tools, and Diagnostic Testing.
IPO Objective of API Holding Limited
As per the draft red hearing prospects, the IPO issue consists only fresh issue. The fresh issue consists of XXXX shares at the face value of ₨ 1 each with including premium of ₨XXXX aggregating up to ₨62500.00 millions. There are fresh shares issues by company and main objective of company for listing is repayment of outstanding borrowings in full or partial, general corporate expense, organic growth initiatives & acquisitions for inorganic growth with strategic initiatives.
IPO Details of API Holding Limited:
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹1 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX Equity Shares |
| Aggregating up to ₹ 62500.00 million | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₹62500.00 million | |
| Offer For Sale | N.A |
| N.A | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Issue Price & Size of API Holding Limited:
The issue price of API Holding Limited hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue aggregating up to ₹62500.00 million at the price of ₨XXXX.
Launch Date of API Holding Limited IPO:
The IPO opening date of API Holding Limited hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of API Holding Limited
| S.No. | Particulars (In millions) | Marc 31 , 2024 |
Marc 31 , 2023 |
Marc 31 , 2022 |
| 1 | Income | |||
| 2 | Revenue from operations | 56,642.86 | 66,439.38 | 57,288.21 |
| 3 | Other income | 946.55 | 558.33 | 521.81 |
| 4 | Total income | 57,589.41 | 66,997.71 | 57,810.02 |
| 5 | Expenses | |||
| 6 | Cost of Material Consumed | 1,645.09 | 1,569.20 | 854.60 |
| 7 | Purchase of stock - in - trade | 45,728.06 | 55,120.60 | 52,566.12 |
| 8 | Changes in inventories of stock - in - trade | 1,430.14 | 618.96 | ( 2,290.53 ) |
| 9 | Employee benefits expense | 6,993.63 | 12,833.20 | 14,589.71 |
| 10 | Finance costs | 7,279.16 | 6,655.43 | 2,582.64 |
| 11 | Depreciation and amortisation expense | 2,159.52 | 2,434.40 | 1,587.85 |
| 12 | Expected credit loss on financial assets | 1,692.64 | ||
| 13 | Other expenses | 5,619.76 | 10,508.31 | 15,025.51 |
| 14 | Total expenses | 72,548.00 | 89,740.10 | 84,915.90 |
| 15 | Loss before exceptional items , share of net profit / ( loss ) of investments | ( 14,958.59 ) | ( 22,742.39 ) | ( 27,105.88 ) |
| 16 | Share of profit / ( loss ) of investments accounted for using equity method | 8.75 | ( 2.99 ) | 6.61 |
| 17 | Loss before exceptional items and tax | ( 14,949.34 ) | ( 22,745.38 ) | ( 27,099.27 ) |
| 18 | Exceptional items | |||
| 19 | Impairment of goodwill | ( 5,825.00 ) | ( 28,256.10 ) | ( 12,671.00 ) |
| 20 | Impairment of investments in associates | ( 33425 ) | ( 963.74 ) | - |
| 21 | Early redemption charges for NCD's | ( 3,424.94 ) | - | - |
| 22 | Others | ( 685.69 ) | - | - |
| 23 | Loss before tax | ( 25,219.72 ) | ( 51,965.22 ) | ( 39,707.70 ) |
| 24 | Tax expense | |||
| 25 | Current tax charge | 379.21 | 389.48 | 342.74 |
| 26 | Deferred tax credit | ( 27003 ) | ( 241.11 ) | ( 125.48 ) |
| 27 | Tax expense pertaining to prior periods | 6.23 | 3.75 | |
| 28 | Total tax expense | 115.41 | 152.12 | 217.26 |
| 29 | Loss after tax | ( 25,335.13 ) | ( 52,117.34 ) | ( 39,924.96 ) |
| 30 | Other comprehensive income | |||
| 31 | Items that will not be redassified to profit and loss | |||
| 32 | Remeasurements of post - employment defined benefit plans | 24.64 | - | - |
| 33 | income tax relating to above items | ( 122 ) | - | - |
| 34 | Other comprehensive income , net of tax | 23.42 | - | - |
| 35 | Total comprehensive loss | ( 25,311.71 ) | - | - |
| 36 | Profit / ( loss ) for the period | |||
| 37 | -Owners of API Holdings Limited | ( 25,49951 ) | - | - |
| 38 | -Non controlling interest | 164.38 | - | - |
| 39 | ( 25,335.13 ) | ( 52,117.34 ) | ( 39,924.96 ) |
Financial Ratios of API Holding Limited
| Particulars | 2024 | 2023 |
| Current Ratio | 0.89 | 3.73 |
| Debt - Equity ratio | 0.6 | 0.01 |
| Debt Service coverage ratio | -1.5 | -7.14 |
| Return on Equity Ratio | -1.11 | -1.34 |
| Inventory turnover ratio | 7.57 | 8.29 |
| Trade Receivables Turnover Ratio | 11.34 | 13.05 |
| Trade Payable Turnover Ratio | 10.06 | 11.44 |
| Net Capital Turnover Ratio | -2.28 | 1.67 |
| Net Profit ratio | -4.2 | -6.28 |
| Return on Capital Employed ( % ) | -29 % | -92 % |
Promoters & Shareholding of API Holding Limited
As of date, there are no shares hold by promoters and promoters group. These are the main shareholders of company as on date of DRHP filled.
| S. No | Name of the shareholder | No. of Equity Shares | % of the Equity Share |
| 1 | Naspers Ventures BV | 813,316,570 | 12.04 |
| 2 | Macritchie Investments Pte . Ltd | 732,516,290 | 10.84 |
| 3 | Surbhi Singh jointly with Universal Trustees Private Limited | 452,780,680 | 6.70 |
| 4 | TPG Growth V SF Markets Pte . Ltd. | 449,492,340 | 6.65 |
| 5 | Evermed Holdings Pte Ltd | 396,033,000 | 5.86 |
| 6 | A. Velumani | 305,781,960 | 4.52 |
| 7 | CDPQ Private Equity Asia Pte . Ltd. | 280,092,780 | 4.14 |
| 8 | Lightstone Fund SA | 261,229,320 | 3.87 |
| 9 | TIMF Holdings | 211,200,660 | 3.13 |
| 10. | Bessemer India Capital Holdings II Ltd | 210,363,670 | 3.11 |
| 11. | The Fundamentum Partnership Fund I | 121,693,330 | 1.80 |
| 12. | Eight Roads Ventures India III LP | 120,985,260 | 1.79 |
| 13. | Shivanand Shankar Mankekar HUF | 91,596,340 | 1.36 |
| 14. | Siddharth Shah | 89,176,340 | 1.32 |
| 15. | Orios Venture Partners Fund - 1 | 84,897,120 | 1.26 |
| 16. | SARV Investments Limited | 82,779,620 | 1.22 |
| 17. | Jasmine Bhaskar Shah jointly with Bhaskar Prataprai Shah jointly with Siddharth Shah | 82,500,000 | 1.22 |
| 18. | JM Financial and Investment Consultancy Services Pvt Ltd | 76,717,740 | 1.14 |
| 19. | B Capital Asia II , Ltd | 73,152,420 | 1.08 |
| 20. | Amansa Investments Ltd | 68,982,980 | 1.02 |
| 21. | Internet Fund VI Pte . Ltd. | 64,752,930 | 0.96 |
| 22. | Kedar Shivanand Mankekar jointly with Shivanand Shankar Mankekar | 63,638,850 | 0.94 |
| 23. | Prashant Dharamdeo Singh jointly with Tushar Kumar | 63,521,150 | 0.94 |
| 24. | KB Global Platform Fund | 51,747,850 | 0.77 |
| 25. | Ivy Icon Solutions LLP | 44,188,320 | 0.65 |
| 26. | Worldwide Healthcare Trust PLC | 41,389,810 | 0.61 |
| 27. | Beta Oryx Limited | 41,389,700 | 0.61 |
| 28. | Kotak Pre IPO Opportunities Fund | 38,222,580 | 0.57 |
| 29. | B Capital Asia Ill LLC | 37,509,120 | 0.56 |
| Total | 5,451,648,730 | 80.68 |
Should You Subscribe To API Holding Limited IPO Or Not:
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of API Holding Limited
Strong healthcare value chain in business
The company has a well-established connection presence in health care. API holding has a good relationship with stakeholders across the value chain which helps in improving network effects. API Holding is continuously working to expand its platform, as of June 30, 2021 Company serviced 3,261 wholesalers, 4,617 prescribing doctors, 87,194 pharmacies, and 926 hospitals. API ltd. Offers expansive service on PharmEasy, consumers avail teleconsultation and diagnostic test service on PharmEasy and its marketplace has 25 million registered users.
Technology-driven business
API Holding solves multiple problems across the healthcare value chain in the country through its technology and data-driven platform. Company open architecture and modern API help in easy and seamless connection with all company partners. API Holding has a 481-employee team to handle and support its technological capabilities. This is the reasons why the company covers the healthcare supply chain and traffic on its platform which help the company to collect substantial data. The capabilities of the analytical team help further to collect real-time insight from this data and later use it in decision-making.
Acquisition and integration
API Holding has shown a record in acquiring and integrating companies, business models, and teams in the last few years. The management team of the company has made important acquisitions for a company which helps to grow the company at large. For mergers and Acquisitions, Companies have specialized teams that help the company to evaluate the condition in which the company performs M&A. The acquisition of Thyrocare and Aknamed by API Ltd. helped in making strong position in diagnostic service and hospital supply. The M&A gives the company synergy and complementary business.
Well-established PharmEasy brand
API Holding Ltd. is the parent company of well known brand PharmEasy which is used by large consumers in the market. PharmEasy is recognized as a consumer healthcare brand across the pan-country level. According to the RedSeer report, the largest digital brand for Pharma products and healthcare services is PharmEasy on the basis of GMV products & services sold in market marketplace in FY 2021. Axelia brand operates PharmEasy as a company licensed to Axelia which operates PharmEasy in the country. API holding also licenses PharmEasy to provide franchise service in the market.
Risk Factors of API Holding Limited
Dependency on Anexila
Anexila operates PharmEasy business in the country and any failure in this could adversely affect business. API holding gives a license to Anxelia to manage the working of PharmEasy and also allows providing franchises of PharmEasy brand. The standard fulfillment, marketing, and digital enablement for franchisee-owned and operated offline pharmacies' failure by franchisees to provide good service may affect negatively the brand image of the company, financial condition, and cashflow of operations.
Acquisition workload
In the year 2021, Ascent Health and Wellness Solutions Private Limited along with other certain firms merged with API Holding Ltd. and the company also acquired Metlife. These acquisitions by the company are crucial for its working and expanding its business scale. API Holding continues its journey by acquiring Aknamed and Thyrocare in fiscal 2022 which strengthens the company's position in the market. However, there is no assurance from the company side that they will achieve planned goals with these acquisitions which creates extra pressure on company operations.
High competition
The healthcare industry is highly competitive and API Holding faces tough competition across its different business platforms. The company competes with other online platforms, traditional sellers as well as other healthcare service providers. In the market, some of the company competitors have better & longer business histories, better relationships with suppliers, a large consumer base, good brand recognition, and well-established marketing & technological resources. If the company fails to compete with competitors effectively it will negatively affect the financial condition and business operation of the company.
Persistent loss making
API Holding has incurred losses and negative cash flow in its past year and probability to continue its losses as an increase in the operation scale of business. The company has experienced losses in the past fiscal year of 2021, 2022, 2023 & 2024. The restated losses after tax of the company in fiscal 2024 are ₨25,335.13 million as compared to ₨39,924.96 million in 2022. The expectation of the company related to loss may remain the same in the future as the company focuses on business expansion. If the profit does not grow in proportion to the expenses then it will affect the profitability of the company adversely.
API Holding Limited Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the API Holding Limited is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
