Online pharmacy startup PharmEasy is acquiring a majority stake in diagnostics chain Thyrocare. NSE 2.05 % Technologies as it looks to diversify and bolster its testing business. PharmEasy parent API Holdings signed a definitive agreement to acquire a 66.1% stake in Thyrocare for Rs 4,546 crore, according to an exchange filing mad, the first acquisition of a listed company by an Indian unicorn.

Thyrocare promoter A Velumani and affiliates will sell their stake at Rs 1,300 per share. Docon Technologies, a 100% subsidiary of API, will be the acquirer and will make an open offer for an additional 26% stake. Thyrocare shares rose 6.2% to Rs 1,448.05 at for a market value of Rs 7,656 crore. As part of the transaction, Velumani will also be investing close to Rs 1,500 crore in API Holdings for a 5% stake, according to the exchange filing. This pegs PharmEasy's valuation at $4 billion, up from $1.8 billion at the last round of investment.

The PharmEasy-Thyrocare transaction comes at a time when India's online pharmacy space is witnessing a wave of consolidationthe Tata-1mg deal, Reliance buying Netmeds and PharmEasy itself purchasing Medlife ahead of a potential IPO. Separately, Mumbai-based Suburban Diagnostics is attracting interest from Dr Lal Pathlabs, Metropolis as well as PharmEasy.

India's online pharmacy market is estimated to swell to $2.7 billion by 2023 from about $360 million currently, EY said in a report last year.

"This deal brings together India's leading digital health platform and one of the most cost-efficient diagnostics solution providers to create an unbeatable integrated digital health platform," as per JM Financial Group.

Based on your reading the caselet and understanding of the transaction respond point-wise the questions given below:

1. How do you perceive takeover of established entity by a digital start-up entity in the same line?

2. What is going to be sustainability of this model?

3. What are the points to take your perceived value to the investment market for raising funds?

4. What is your advisory to the Pharmeasy regarding tapping the market?

5. Any out of box Investment Advisory of your own on the deal?