Event Date: N/A
API Holdings Limited, in a Letter of Offer dated September 25, 2023, is raising up to INR 3500,00,00,000 through a Rights Issue, by issuing Compulsorily Convertible Preference Shares (CCPS B) to its eligible equity shareholders ("Equity Shareholders") on the record date of August 11, 2023. The CCPS B will be issued at a price of INR 96.8 per CCPS.
Restrictions and Disclaimers: The CCPS B have not been registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States, except in transactions exempt from registration. This letter of offer is for information only and should not be copied or re-distributed.
Background: API Holdings initially aimed for an IPO in 2021-22 but withdrew in July 2022 due to market conditions. To repay outstanding debt, the Company raised debt from Goldman Sachs and EvolutionX in June 2022 through non-convertible debentures. A key term was raising additional capital by January 2023, which the Company couldn't meet. On July 15, 2023, MEMG International India Private Limited made a binding offer to subscribe to the Company's securities worth INR 1300,00,00,000. The Board decided to offer CCPS B to its internal stakeholders first before the Incoming Investor.
Key Terms of the Rights Issue:
Other Key Details:
The document also includes Annexures detailing company information (Annexure A), general terms of the Rights Issue (Annexure B), terms of the offer of Unsubscribed Rights Issue Amount (Annexure C), terms of the CCPS (Annexure D), the application form (Annexure E), and financial information (Annexure F), restrictions on purchases and resales (Annexure G) and timelines for submission of applications forms and allotment of CCPS B to other eligible persons (Annexure H).
Annexure A: Company Information
Details of Debt and Settlement with Goldman and EvoX
Purpose of the Offer
Business Overview (Part 2)
Financial Performance Highlights (Part 4)
Capital Structure and Shareholding Pattern (Part 3)*
Restrictions on Purchases and Resales (Annexure G):
Timelines for other eligible persons (Annexure H)
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Our blog provides insightful information about unlisted shares, offering a deeper understanding of how these assets work, their potential benefits, and the risks involved. Whether you're new to unlisted shares or looking to expand your knowledge, we cover topics such as investment strategies, valuation methods, market trends, and regulatory aspects. Stay updated with expert tips and guides to navigate the unlisted share market effectively.
Unlisted shares are stocks of companies that are not listed on any stock exchange, meaning they are not publicly traded. These shares are typically available for trade in the private market through brokers, and can offer unique investment opportunities.
You can buy unlisted shares through a broker or platform that specializes in unlisted share transactions. We provide a secure and easy way to purchase unlisted shares from top companies, ensuring a smooth transaction process.
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Unlisted shares can offer higher growth potential, as they are typically not subject to the same market volatility as listed shares. However, they come with higher risk due to limited liquidity and availability of information. It's important to research thoroughly and consult experts before investing.
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Yes, unlisted shares can eventually be listed on a stock exchange through an Initial Public Offering (IPO). This process allows the company to offer its shares publicly and be traded on major exchanges, potentially increasing liquidity and visibility.
Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.
The value of unlisted shares is typically determined by private transactions, financial reports, and market demand. We provide the latest updates on share prices of unlisted companies, giving you the most accurate valuation available.
The minimum investment for unlisted shares can vary depending on the company and broker. Generally, the minimum investment is higher than for listed stocks, but we provide detailed information to help you make the best investment decisions.
Yes, unlisted shares may pay dividends if the company has declared them. However, since these companies may be in their growth stage, dividend payments are not always guaranteed. It's important to check the company's financial health before investing.
It's important to conduct thorough research on the company's financials, management, market potential, and overall business model. You can also seek professional advice from experts to help you choose unlisted shares with strong growth prospects.
Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.
