IPO Reviews

Ebixcash is coming up with IPO (Initial Public Offering): Facts need to know before investing

Ebixcash and its operation: The company is founded on 26 April 2002 in Central Delhi, India with initial authorized share capital is INR 100.00 crore and a total paid-up capital is INR 23.44 lac. EbixCash provides digital products and services in the Business to consumer (B2C), Business to Business (B2B), and financial technology platforms through a consolidated business model. The company organizes its business operation in four primary segments namely payment solutions, travel, financial technologies, BPO (Business Processing Outsourcing), and start-up initiatives.

EbixCash focuses on the financial exchange channels, processes, and entities through a comprehensive platform, where they aim to serve the customer’s need, by bringing together the advantages of B2B, B2C, and B2B2C models within a single platform.

As per the DRHP document, the company has over 650,000 physical agent distribution outlets for payment solutions, remittance, travel, and insurance products throughout India and Southeast Asia as of December 31, 2021, with a digital omnichannel online platform for all of our offerings. This provides a competitive edge to the company to serve its customer better regardless of product, service, or location. The company claims to have a global reach, including 82 retail branches, 62 retail kiosks in 16 international airports, 12 seaports, over 250 franchise partners across 69 cities, as well as offered through more than 1200 corporate clients, more than 27 bank clients and 5-star hotels in India.

The company is expanding its operation through acquisition. The company acquired AssureEdge Global Services Private Limited in October 2020. Earlier in 2019, the company also acquired an 80% controlling stake in India-based Zillious Solutions Private Limited-an on-demand SaaS travel technology solution, with market leadership in the corporate travel segment in India.

Leadership team: The company is founded by Robin Raina who is an American industrial engineer, businessman, and philanthropist.

Robin Raina (Chairman of Board, President & CEO) – Robin Raina, Chairman of the Board of the Company, President, and Chief Executive Officer. He did a bachelor’s degree in engineering (industrial engineering-cooperative) from Thapar Institute of Engineering and Technology, Patiala.

He joined Ebix in October 1997 as Vice President – Professional Services. He was promoted to Senior Vice President – Sales and Marketing in February 1998, chief executive officer, effective from September 23, 1999, and subsequently became the chairman of its board, in May 2002.

Guruprasad Tiruvannamalai Chandrashekaran (Whole-Time Director Executive Director) – Guruprasad is an Executive Director on the EbixCash Board, since he also serves as the Managing Director, EbixCash Payment Solutions Division, and leads all Profit & Loss aspects of the Payment Solutions Division internationally at EbixCash. Guruprasad is an MBA from the National Institute of Technology, Karnataka, besides having completed a senior management program from the Indian Institute of Management, Ahmedabad

Financial snapshot: EbixCash

Ebixcash reported its annual revenue of INR 22.82 billion in the year ended 31st March 2020 grew by 9.3% from the previous year ended 31st March 2019. The company reported a strong revenue of INR 42.96 billion in the year 2021 with 88.3% from the previous year. During the same period, profits before tax remain constant from INR4.5 billion in 2019 to INR3.9 billion in 2021. However, net profit has declined from INR4.6 billion in 2019 to INR2.3 billion in 2021. The company is expecting strong growth in FY2021-22 where the revenue crossed the halfway mark of the previous year’s revenue with INR26.5 billion for the first half of the year and EBITA reported as INR3.4 billion during the same period.

Strategies:

  • The company aims to continue growing each of the business segments with a particular focus on cross-selling strategies, which will further establish the value proposition with the customers.
  • The company aims to serve its customer across their digital journey while offering the advantages of B2B, B2C, and B2B2C models within a single platform.
  • The company operates in regulated industries, such as payment solutions, forex, remittance, bill payments, insurance, and travel, and as such is required to obtain and maintain certain licenses which create an entry barrier for other players in the industry to enter into this segment.
Initial public offering (IPO): how net proceeds will be utilized

The company is coming up with an initial public offering of INR 6,000 crore. Around INR1035 crore of the net proceeds will be utilized to fund the working capital requirements of its derivative Ebix Travels Private Limited and EbixCash World Money Limited. Around INR2748 crore will be used for the purchase of outstanding compulsorily modifiable debentures from Ebix Asia Holdings Inc, Mauritius and the rest amount will be used for funding strategic accession, investments, and general business purpose. The entire capital raised from this offering will go into the company. 

Ebixcash IPO Details

Subscription Dates 

Price Band 

Offer for sale   

Fresh Issue of Shares 

Authorized share capital  

Equity Shares outstanding before the Issue 

Minimum bid (lot size)   

Face Value        

Retail Allocation %    

Listing On                      

Coming soon

Coming soon

NIL

₹ 60,000 million**

1,750,000,000 Equity share

939,751,520 Equity Shares

Coming soon

INR 1 per share

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