31-Jul-2023
2 mins read
EbixCash has planned its initial public offering (IPO) for August 2023, although the pricing details are yet to be revealed. The IPO will feature new stock valued at Rs 6,000 crore, per the Draft Red Herring Prospectus (DRHP). Unlike many other IPOs, this one will not include an Offer for Sale (OFS) from current stockholders. The company is also contemplating an additional equity issuance, potentially including a rights issue that could accumulate up to Rs 1,200 crore. This possibility might decrease the original volume of the issue. The IPO is being managed by lead book-runners, including Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, and Yes Securities.
EbixCash Limited Product Portfolio
Founded in 2002, EbixCash Limited is a leader in providing digital products and services, mainly catering to B2C, B2B, and fintech sectors through a synergistic business framework. It has positioned itself as one of India’s largest comprehensive financial exchanges, boasting a robust network of more than 650,000 physical points of presence in addition to a comprehensive online digital platform.
The company’s expansive offerings span various sectors, including payments solutions, travel, insurance, and financial technology, showcasing the breadth and diversity of its services. With a workforce of over 10,500 professionals distributed across its distinct sectors, EbixCash operates out of 191 offices throughout the Asia Pacific region.
The core business segments of EbixCash Limited encompass payment solutions, travel, financial technologies, business process outsourcing (BPO) services, as well as start-up initiatives. Its wide-ranging product portfolio can be accessed via its extensive distribution network covering 4,000 cities and reaching 75,000 villages.
The Objectives of EbixCash Limited IPO
The funds raised from the offering will be allocated for various strategic purposes. Approximately Rs 1,035 crore will be directed towards meeting the working capital needs of its subsidiary companies. An additional Rs 2,748 crore will be used to acquire outstanding convertible debentures from its subsidiaries. The remaining proceeds will be earmarked for potential strategic acquisitions and investments to fuel the company’s growth.
About the EbixCash Limited IPO
Through its planned IPO, EbixCash is targeting a fundraising of Rs 6,000 crore, positioning it as the largest public offering in 2023 thus far. The IPO consists entirely of fresh shares, and the company, according to Raina, will soon disclose the price at an appropriate valuation.
In terms of financial performance, EbixCash reported revenues of Rs 2,456 crore for the fiscal year 2022-23. Based on restated consolidated financial statements, the company’s operational revenue for the same period was Rs 2,371.93 crore, while its total income stood at Rs 2,616.67 crore.
Between 2016 and 2019, EbixCash made significant strategic investments, completing 26 acquisitions with a total infusion of USD 680 million in India. As outlined on page 114 of the DRHP, the company made 10 significant acquisitions during the fiscal years 2016 to 2021, with a combined consideration amounting to Rs 36,135 million.
Financial Performance of EbixCash Limited (In Rs and Crore)
| Period Ended | 31-Mar-19 | 31-Mar-20 | 30-Sep-20 |
| Assets | 6,552.75 | 6,466.51 | 6,797.06 |
| Revenue | 2,087.61 | 2,281.94 | 1,165.89 |
| Profit After Tax | 459.53 | 243.34 | -19.09 |
| Net Worth | 3,364.52 | 3,769.97 | 3,756.00 |
| Period Ended | 31-Mar-19 | 31-Mar-20 | 30-Sep-20 |
Important Dates for EbixCash Limited IPO (Tentative)
| IPO Date | Yet to be announced |
| Listing Date | Yet to be announced |
| Face Value | Rs 1 per share |
| Price | Yet to be announced |
| Lot Size | Yet to be announced |
| Total Issue Size | Aggregating up to Rs 6,000 Crore |
| Fresh Issue | Aggregating up to Rs 6,000 Crore |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
EbixCash Limited IPO Lead Manager(s)
The Lead managers for EbixCash Limited IPO are:
- Motilal Oswal Investment Advisors Pvt Ltd
- Equirus Capital Private Limited
- Icici Securities Limited
- Sbi Capital Markets Limited
- Yes Securities (India) Limited
How to Apply for EbixCash Limited IPO
Wait for the public issue to open for subscription, then click on this link to apply for the EbixCash Limited IPO with Bigul https://ipo.bonanzaonline.com/.
How to Check Allotment Status of EbixCash Limited IPO
The registrar for EbixCash Limited IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
- What is EbixCash Limited IPO?
The EbixCash Limited IPO is a public offering scheduled for August 2023. The company aims to raise Rs 6,000 crore by issuing new shares, making it the largest IPO of 2023 to date.
- What is the price band for EbixCash Limited IPO?
The price band for the IPO is yet to be announced.
- What will the proceeds from the EbixCash Limited IPO be used for?
The company intends to use the IPO proceeds for several strategic purposes. They plan to allocate approximately Rs 1,035 crore for their subsidiaries’ working capital requirements, an additional Rs 2,748 crore for buying outstanding convertible debentures from their subsidiaries, and the remaining funds for potential strategic acquisitions and investments.
- What is the financial performance of EbixCash Limited?
For the fiscal year 2022-23, EbixCash reported revenues of Rs 2,456 crore. The company’s operational revenue for the same period was Rs 2,371.93 crore, while its total income was Rs 2,616.67 crore.
- When is the IPO date for EbixCash Limited?
The IPO date for EbixCash Limited is scheduled for August 2023, but the exact dates are yet to be announced.
- Who are the lead managers for the EbixCash Limited IPO?
The lead managers for the IPO are Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, and Yes Securities.
- How can I apply for the EbixCash Limited IPO?
Once the public issue opens for subscription, you can apply for the EbixCash Limited IPO via this link: https://ipo.bonanzaonline.com/
- How can I check the allotment status of EbixCash Limited IPO?
The registrar for the EbixCash Limited IPO is Link Intime India Private Ltd. You can check your allotment status via this link: https://linkintime.co.in/
- What is the lot size for EbixCash Limited IPO?
The details for the lot size of the EbixCash Limited IPO are yet to be announced.
- Where will EbixCash Limited be listed?
EbixCash Limited will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).