Ebixcash files draft papers with Sebi for Rs 6,000-cr IPO

FPJ Web DeskUpdated: Thursday, March 10, 2022, 05:54 PM IST
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The IPO comprises equity shares of face value of Re 1 each which is a complete fresh issue of shares and the entire proceeds will go to the company. The offer also includes a reservation for subscription by eligible employees../ Representational image |

EbixCash Limited, a technology-enabled provider of digital products and services, has filed its draft red herring prospectus (DRHP) with Sebi to raise Rs 6,000 crore via an initial public offering (IPO).

The IPO comprises equity shares of face value of Re 1 each which is a complete fresh issue of shares and the entire proceeds will go to the company. The offer also includes a reservation for subscription by eligible employees.

Additionally, the company, in consultation with the lead bankers to the issue may consider a further issue of equity shares including a rights issue aggregating up to Rs 1200 crore. If such placement is completed, the fresh issue size will be reduced.

The issue proceeds will be utilised to the tune of Rs 1,035.03 crore for working capital requirements of its subsidiaries, Rs 2,747.57 crore for purchase of outstanding convertible debentures from its subsidiaries and funding strategic acquisitions and investments besides general corporate proposes.

EbixCash four primary business segments, payment solutions, travel, financial technologies and business processing outsourcing (“BPO”) services and start-up initiatives. The Noida-based company utilizes "phygital” strategy that combines over 650,000 physical agent distribution outlets for payment solutions, remittance, travel and insurance products throughout India and Southeast Asia to an omni-channel online digital platform.

In October 2020, it acquired AssureEdge Global Services Private Limited rebranded as EbixCash Global BPO services.

EbixCash clocked a profit of Rs 230.05 crore in the financial year FY21 against Rs 243.34 in the previous year, an impact due to Covid-19, whereas revenue during the year FY21 increased 91.36% to Rs 4,152.53 crore from Rs 2,170.02 crore in the previous year, primarily due to growth in its forex, remittances and payments business segments.

Motilal Oswal Investment Advisors Limited, Equirus Capital Private Limited, ICICI Securities Limited, SBI Capital Markets Limited and Yes Securities (India) Limited are the book running lead managers for the issue, while Link Intime is the registrar.

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