The issue is complete fresh issue of shares
EbixCash Limited, a technology enabled provider of digital products and services, has filed a draft red herring prospectus (DRHP) with market regulator SEBI for a ₹ 6,000 crore initial public offering (IPO).
The Noida-based company has four primary business segments— payment solutions, travel, financial technologies and business processing outsourcing (BPO) services and start-up initiatives.
The company utilises ‘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.
Financial performance
EbixCash clocked a profit of ₹ 230.05 crore in the financial year FY21 against profit of ₹243.34 in the previous year, whereas revenue during the year FY21 increased 91.36 per cent to ₹4,152.53 crore from ₹2,170.02 crore in the previous year, primarily due to growth in its forex, remittances and payments business segments.
Profit for the six-month period ended September 2021 stood at ₹191.10 crore on revenue of ₹2,653.42 crore.
The proposed IPO comprises equity shares of face value of ₹1 each which is a complete fresh issue of shares and the entire proceeds will go to the company.
Usage of funds
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 ₹1,200 crore. If such placement is completed, the fresh issue size will be reduced.
The issue proceeds will be utilised to the tune of ₹1,035.03 crore for working capital requirements of its subsidiaries, ₹2,747.57 crore for purchase of outstanding convertible debentures from its subsidiaries and funding strategic acquisitions and investments besides general corporate proposes.
EbixCash is a market leader in international remittance based on Gross Transaction Value (GTV) and foreign exchange, besides having a considerable yet increasing exposure to digital payments, domestic money remittances, pre-paid cards, travel, insurance, and corporate and incentive solutions.
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.