PharmEasy IPO: Traders’ body CAIT urges SEBI to stop offering, know why

New Delhi: The Confederation of All India Traders (CAIT) on Friday (December 10) moved the Securities and Exchange Board of India (SEBI) with the aim of stopping the initial public offering (IPO) of PharmEasy.

According to media reports, API Holdings, the parent firm of e-pharmacy firm PharmEasy, has recently filed a ‘Draft Red Herring Prospectus’ (DRHP) with the market regulator.

CAIT has written to SEBI to stop the IPO of PharmEasy. “The business model of ‘Pharmacy’ controlled by ‘API Holdings’ is completely based on illegality,” the traders body said in a statement.

The organization cited the Delhi High Court order passed in 2018 to say that the sale of drugs on the Internet is not allowed in the country.

CAIT in its statement said, “We believe that if this IPO is approved by SEBI, then investors’ assets worth billions are at stake. We are sure that this will be given your kind and immediate attention.” ”

Further, the traders body has also alleged that the pharmacy has mentioned Thyrocare as its subsidiary in the DRHP submitted to SEBI, without any order of the Competition Commission of India, which prevents activities which may potentially can adversely affect business, IANS reported. Read also: Motorola launches Moto g51 5G with Snapdragon 480+ in India: Price, Features, Specs

Apart from SEBI, South Chemists and Distributors Association had also submitted a letter to SEBI requesting to stop the IPO of Policy Bazaar. Read also: RBI makes ‘Legal Entity Identifier’ mandatory for cross-border transactions above Rs 50 crore

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