EbixCash Ltd IPO

Upcoming

IPO Synopsis

EbixCash, a digital product and service provider, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise funds via initial public offering (IPO). The issue consists of fresh issue of equity shares worth Rs..6000 crores. It may consider a further issue of equity shares including a rights issue aggregating up to Rs.1,200 crore and this may reduce the original issue size. Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets and Yes Securities are the book running lead managers for the issue.


Objective of the Issue
The issue proceeds will be utilized for: 
About 1,035 crore of working capital requirements of its subsidiaries, 
2,748 crore for purchase of outstanding convertible debentures from its subsidiaries, and funding strategic acquisitions and investments.

About EbixCash Ltd

Ebixcash, based out of Noida, is a a technology enabled provider of digital products and services in the B2C, B2B and financial technology arena through an integrated business model, with leadership positions in key businesses it operates in. 

It has four primary business segments,

1. payment solutions
2. travel
3. financial technologies
4. business processing outsourcing (“BPO”) services and start-up initiatives 

The fintech firm by converging various mediums for Payment Solutions, Forex, Domestic and International Remittance, Travel, Financial Technologies, Insurance, BPO services, and healthcare in India and some international locations, the company aims to be an end-to-end platform for all customers and a "back-end" platform for corporate participants.
It utilises a 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 digital platform.
The company provides a variety of products in India and in over 75 international jurisdictions, which includes front-end focused domestic and international money remittance, foreign exchange (“Forex”), pre-paid gift cards, utility payments, Aadhaar Enabled Payment Services (“AEPS”) services, PoS services, ticketing services; and back-end focused SaaS and self-hosted solutions for the financial sector including lending and wealth management operations, bus exchange technology, insurance and healthcare technology(Ask A Doctor).
The firm acquired AssureEdge Global Services Private Limited rebranded as EbixCash Global BPO services, which had 800 employees at the time of acquisition and today it has more than 2850 employees, with an addition of 21 clients and converting it into a profitable business.

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 4152.5 2170.0 1888.3
EBITDA 511 496.5 624.5
PAT 230.0 243.3 459.5
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 6793.7 6466.5 6552.8
Share Capital 0.2 0.2 0.2
Total Borrowings 1516.1 1520.4 1810.2
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 183.40 92.34 125.58
Net cash from / (used in) investing activities -178.72 12.41 -2519.87
Net cash flow from / (used in) financing activities 26.96 -410.15 2543.43
Net increase (decrease) in cash and cash equivalents 31.64 -305.40 149.14


Peer Comparison

There are no listed entities in India whose business portfolio is comparable with that of this business.


Key Points

  • Strenghts

    1. Integrated business model offering one-stop-shop for B2B, B2C and B2B2C
    2. Operating in regulated industries with a large network, resulting in a high barrier to entry
    3. Multiple cross-selling opportunities, synergies, network effect and wide reach for customer acquisition
    4. Proprietary technology offering that is flexible and customizable for wide application across a variety of customer requirements
    5. Successfully acquired complementary businesses, integrated them into our ecosystem, and turned them profitable

  • Risks

    1. inability to generate income from predominantly undertaking fee and commission-based activities
    2. rely extensively on our information technology systems and any weakness, disruption or failure in such systems, or breach of data, could adversely affect our operations
    3. Inability to innovate, upgrade and adapt to new technological advances may hinder success
    4. A successful cybersecurity attack could interrupt or disrupt our information technology systems or cause the loss of confidential or protected data
    5. Any disruption of the internet connections, including to any third-party cloud providers, could affect the success of our internet-based products and services

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the price band of the IPO?

EbixCash IPO details are yet to be announced.

When does the EbixCash issue open and close?

EbixCash IPO details are yet to be announced.

What is the size of EbixCash IPO issue?

The IPO comprise of a fresh issue of equity shares worth Rs.6000 crores

Who are the promoters/key personnels of EbixCash?

EbixCash is promoted Ebix, Inc. and Ebix Singapore Pte. Ltd.

What is the allotment date of EbixCash?

EbixCash IPO details are yet to be announced.

What is the EbixCash listing date?

EbixCash IPO details are yet to be announced.

Who are the book runners for EbixCash IPO?

Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets and Yes Securities are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds from the issue will be used for: 

1. About 1,035 crore of working capital requirements of its subsidiaries, 
2. 2,748 crore for purchase of outstanding convertible debentures from its subsidiaries, and funding strategic acquisitions and investments

How to apply for the EbixCash IPO?

To apply for the IPO, follow the steps given below

1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app

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