New Delhi: The Confederation of All India Traders (CAIT), on Friday (December 10), moved to the Securities and Exchange Board of India (SEBI) with the aim to stop the initial public offer (IPO) of PharmEasy.
API Holdings, the parent firm of the e-pharmacy firm PharmEasy, has filed the `Draft Red Herring Prospectus` (DRHP to the market regulator recently, according to media reports.
CAIT wrote a letter to SEBI to halt PharmEasy’s IPO. “The business model of `PharmEasy` which is controlled by ‘API Holdings’ is entirely based on gross illegality,” the traders’ body said in a statement.
The organisation cited a Delhi High Court order passed in 2018 to point out that the sale of medicines over the internet is not allowed in the country.
“We believe that investor wealth worth billions is at stake if this IPO is approved by SEBI. We are sure that it will receive your kind and immediate attention,” CAIT said in its statement.
Moreover, the traders’ body has also alleged that Pharmeasy has mentioned Thyrocare as its subsidiary in the DRHP submitted to the SEBI, without any order from the Competition Commission of India, which prevents activities that potentially may have an adverse effect on business, IANS reported. Also Read: Motorola launches Moto g51 5G with Snapdragon 480+ in India: Price, feature, specs
Besides SEBI, the South Chemists and Distributors Association had also submitted a letter to the SEBI requesting to stop the IPO of PolicyBazaar. Also Read: RBI makes ‘Legal Entity Identifier’ must for Rs 50 crore plus cross-border deals