EbixCash GMP IPO Details
EbixCash, headquartered in Noida, is a technology-enabled company that offers a wide range of digital products and services in the B2C, B2B, and financial technology sectors. It operates through an integrated business model and holds leading positions in the key areas it serves.
EbixCash operates through four primary business segments:
- Payment Solutions
- Travel
- Financial Technologies
- Business Processing Outsourcing (“BPO”) services and start-up initiatives
EbixCash is a fintech firm that offers a comprehensive range of services in India and international markets. By integrating various mediums for payment solutions, forex, remittance, travel, financial technologies, insurance, BPO services, and healthcare, the company aims to provide an end-to-end platform for all customers and act as a “back-end” platform for corporate participants.
The company follows a phygital strategy, combining over 650,000 physical agent distribution outlets throughout India and Southeast Asia with an omni-channel digital platform. This approach allows customers to access their services conveniently.
EbixCash provides a wide array of products, including domestic and international money remittance, forex services, pre-paid gift cards, utility payments, Aadhaar Enabled Payment Services (AEPS), point-of-sale (PoS) services, ticketing services, and back-end solutions for the financial sector. Their back-end solutions encompass software-as-a-service (SaaS) and self-hosted solutions for lending and wealth management operations, bus exchange technology, insurance, and healthcare technology (such as Ask A Doctor).
The firm expanded its capabilities by acquiring AssureEdge Global Services Private Limited, which was subsequently rebranded as EbixCash Global BPO services. With the acquisition, the company has grown to have more than 2,850 employees and has added 21 clients, transforming it into a profitable business venture.
IPO Synopsis
EbixCash, a digital product and service provider, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for its initial public offering (IPO). The IPO consists of a fresh issue of equity shares worth Rs. 6000 crores. Additionally, there may be a further issue of equity shares, including a rights issue, totaling up to Rs. 1,200 crore, which could impact the original issue size. Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, and Yes Securities have been appointed as the book running lead managers for the IPO.
Objective of the issue:
- Approximately 1,035 crore will be allocated towards meeting the working capital requirements of its subsidiaries.
- An amount of 2,748 crore will be used for the purchase of outstanding convertible debentures from its subsidiaries.
- The remaining funds will be utilized for funding strategic acquisitions and investments.
EbixCash Ltd Financial Status
| 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
In India, there are currently no listed entities that have a business portfolio directly comparable to that of EbixCash. EbixCash operates in a unique position, offering a wide range of fintech services that encompass payment solutions, remittance, travel, insurance, and more. Its integrated business model and extensive network of physical agent distribution outlets set it apart from other listed entities in the Indian market.
IPO Key Points
Strengths:
- Integrated business model offering a comprehensive solution for B2B, B2C, and B2B2C.
- Operating in regulated industries with a large network, creating a high barrier to entry for competitors.
- Multiple cross-selling opportunities, synergies, network effects, and wide reach for customer acquisition.
- Proprietary technology offering that is flexible and customizable to meet various customer requirements.
- Successful acquisition and integration of complementary businesses, leading to profitability.
Risks:
- Dependence on fee and commission-based activities for income generation.
- Reliance on information technology systems, with the potential for weaknesses, disruptions, or data breaches to impact operations.
- Inability to innovate, upgrade, and adapt to new technological advances, hindering success in a fast-paced industry.
- Vulnerability to cybersecurity attacks, which could disrupt systems or lead to the loss of confidential data.
- Potential impact from disruptions to internet connections or third-party cloud providers, affecting internet-based products and services.
EbixCash IPO FAQs
What is the minimum lot size and investment required for the EbixCash IPO?
The minimum lot size and investment details will be disclosed in the IPO prospectus.
What is the price band of the IPO?
The price band for the EbixCash IPO will be announced in the IPO prospectus.
When does the EbixCash issue open and close?
The opening and closing dates of the EbixCash IPO will be announced in the IPO prospectus.
What is the size of the EbixCash IPO issue?
The EbixCash IPO comprises a fresh issue of equity shares worth Rs. 6000 crores.
Who are the promoters/key personnel of EbixCash?
EbixCash is promoted by Ebix, Inc. and Ebix Singapore Pte. Ltd.
What is the allotment date of EbixCash?
The allotment date for the EbixCash IPO will be announced after the closing of the issue.
What is the EbixCash listing date?
The listing date for the EbixCash IPO will be announced after the allotment and finalization of the issue.
Who are the book runners for the EbixCash IPO?
The book running lead managers for the EbixCash IPO are Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, and Yes Securities.
What is the objective of the issue?
The proceeds from the IPO will be utilized for working capital requirements of subsidiaries, purchase of outstanding convertible debentures from subsidiaries, and funding strategic acquisitions and investments.
How to apply for the EbixCash IPO?
To apply for the EbixCash IPO, please follow the steps outlined below:
1. Log in to your 5paisa account and navigate to the current IPO section.
2. Select the EbixCash IPO from the list of available IPOs.
3. Enter the number of lots and the price at which you wish to apply for the IPO.
4. Provide your UPI ID, which is linked to your bank account.
5. Click on the submit button to place your bid with the exchange.
6. Once your bid is placed, you will receive a mandate notification on your UPI app.
Follow the instructions in the notification to block the required funds for the IPO application.
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