Noida-based EbixCash files DRHP for Rs 6,000 cr IPO of fresh shares

The company may also consider raising further equity including a rights issue of up to Rs 1,200 crore. If this placement is completed, the fresh issue size will be reduced

EbixCash Limited, the Indian subsidiary of Nasdaq listed Ebix Inc, has filed its draft red herring prospectus (DRHP) with market regulator Sebi to raise Rs 6,000 crore via an initial public offering (IPO).

The offer consists entirely of a fresh issue of shares and also includes 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 1,200 crore. If such placement is completed, the fresh issue size will be reduced.

From the proceeds of the issue, the company plans to use Rs 1,035 crore from for working capital requirements of its subsidiaries, Rs 2,748 crore for purchase of outstanding convertible debentures from its subsidiaries and funding strategic acquisitions and investments besides general corporate proposes.

EbixCash claims to be one of the market leaders in international remittance based on gross transaction value (GTV) and foreign exchange, besides having an exposure to digital payments, domestic money remittances, pre-paid cards, travel, insurance, and corporate and  incentive solutions.

It has four primary business segments –  payment solutions, travel, financial technologies and business processing outsourcing (“BPO”) services and start-up initiatives.

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, whereas revenue during FY21 increased 91.36 per cent 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.

The Noida-based company 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.

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.

In October 2020, it 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.

Profit for the six-month period ended September 2021 stood at Rs 191 crore on revenue of Rs 2,653.42 crore against Rs 1,140.83 crore on the back of rise in payment solutions and financial technology business segments, which account for 77.73 per cent and 19.46 per cent, respectively, of total revenue.

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.

BOX

– Ebix may consider a further issue of equity shares including a rights issue aggregating up to Rs 1,200 crore. If such placement is completed, the fresh issue size will be reduced

–  The company plans to use Rs 1,035 crore from for working capital requirements of its subsidiaries, Rs 2,748 crore for purchase of outstanding convertible debentures from its subsidiaries and funding strategic acquisitions

–  During FY21, revenue increased 91.36 per cent 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

– EbixCash clocked a profit of Rs 230 crore in the financial year FY21, down5 per cent against Rs 243 in the previous fiscal