EbixCash has filed the draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) for an initial public offering of ₹6,000 crore. EbixCash is the Indian subsidiary of NASDAQ-listed Ebix, Inc. that provides technology-enabled digital products and services.
The company may attempt a pre-IPO placement of ₹1,200 crore. The issue size will be reduced to the extent of such placement if it is completed, EbixCash said in its DRHP.
EbixCash said that it will reserve a portion of the issue size for certain eligible employees. These employees will be able to purchase the issue for a discounted price. The company has not disclosed the extent of shares reserved for employees, not the discount on issue price for them.
The price band, the employee discount, and the minimum bid lot size will be decided by the company in consultation with the book running lead managers, EbixCash further said in the document. This information will be declared two days before the bid opening date, it added.
The issue is being made through the book building process, wherein not more than 50% of the net issue shall be allocated to qualified institutional buyers (QIBs), unless 60% of the QIB portion is allocated to anchor investors.
Out of the net proceeds worth ₹6,000 crore raised from the issue, ₹1,035.03 crore will be used for funding the working capital requirements of EbixCash’s subsidiaries – Ebix Travels Private Limited and EbixCash World Money Limited. Meanwhile, ₹2,747.57 crore will of the proceeds will be used for purchase of outstanding compulsorily convertible debentures from Ebix Mauritius which were issued by certain of our Subsidiaries and payment of interest on such outstanding compulsorily convertible debentures.
EbixCash will utilise the rest of the amount raised through its initial public issue, amounting to ₹2,217.41 crore, to fund strategic acquisitions and investments, as well as general corporate purposes.
EbixCash is a technology-enabled provider of digital products and services in the B2C, B2B and financial technology arena. Its key business verticals are: payment solutions, travel, financial technologies, and business processing outsourcing (BPO) services and start-up initiatives. The company focuses on the convergence of financial exchange channels, processes and entities.
It is active in India and 75 jurisdictions. As of December 2021, EbixCash combined over 6.50 lakh physical agent distribution outlets for payment solutions, remittance, travel and insurance products throughout India and Southeast Asia, with a digital omni-channel online platform for all its offerings.
EbixCash has appointed Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, YES Securities (India) Ltd as the book running lead managers to advise the company on its IPO.
Leave a Comment
Your email address will not be published. Required field are marked*