The following three significant items were brought to the attention of shareholders by API holdings on August 19, 2022. 1. The management of API holdings has made the decision to withdraw the RHP of IPO due to the weak market conditions and strategic considerations that have been taken into account. 2. We are all aware that API Holdings is the company with the fastest rate of expansion in the e-commerce sector for pharmacy, and because of this, they have a constant need for additional funding. Because the IPO has been delayed, they are thinking about doing a right issue to raise additional capital. For those who aren't familiar with the term, "right issue" refers to the process of soliciting additional financial support from the company's current shareholders. 3. In the month of September, API holdings will be conducting a right issue in order to raise capital. Every stakeholder in the company will receive their own individual mailing with instructions on how to subscribe to the Right Issue. The price of each share in the Right issuance is anticipated to be Rs.100. It is anticipated that the Right Issue will be released during the first week of September. UnlistedZone Take: According to our assessment, the reason API holdings have withdrawn the RHP is because they were not receiving the appropriate valuation in the market. The most recent round of financing that they secured was between Rs.57 and Rs.60 per share. In the event of an initial public offering (IPO), you are required to solicit financial backing from outside investors. We believe that the Indian and foreign investors were not willing to give even the value of Rs.50 per share at this stage, which would translate to a valuation of $4 billion dollars. Because of this, the management of API holdings has decided to cancel an initial public offering (IPO) and instead launch a right issue at a price of Rs.100 per share. If you look, you'll find that shares of Pharmeasy may be purchased for Rs. 40 per share in the unlisted market. Therefore, the question that has to be answered is why investors are going to subscribe to it for Rs.100 per share in the right issue. In the first place, they have not specified the size of the Right issue. Second, we believe that the large investors who are existing investors will put in an application for the right issue. It is possible that the goal is to try to establish a base price of Rs.100 in the private market because the retail investors will never apply in the right issue at Rs.100 per share. Moreover, this is the expected price and not final Document