Ebix Inc’s Indian Arm Ebixcash Files Draft Papers With Sebi For Rs 6,000-Crore IPO

The company is planning to explore a pre-initial public offering placement of up to Rs 1,200 crore

According to the draft red herring prospectus, the funds will be garnered through fresh issuance of equity shares and there will not be any offer-for-sale component. Image: Getty

New Delhi: Nasdaq-listed Ebix Inc’s Indian subsidiary, Ebixcash, has filed draft papers with capital markets regulator Securities and Exchange Board of India (Sebi) to raise Rs 6,000 crore through an initial public offering (IPO), the PTI reported on Thursday.

According to the draft red herring prospectus (DRHP), the funds will be garnered through fresh issuance of equity shares and there will not be any offer-for-sale (OFS) component.

The firm is planning to explore a pre-IPO placement of up to Rs 1,200 crore. If such a placement is completed, the issue size will be reduced. Further, the issue includes a reservation of part equity shares for subscription by eligible employees. The employee reservation portion will not exceed 5 per cent of post-issue paid-up equity share capital.

Proceeds of the IPO will be used for funding the working capital requirements of the company's subsidiaries, Ebix Travels and EbixCash World Money.

In addition, the funds would be utilised to acquire Ebix Mauritius's outstanding compulsorily convertible debentures, for funding strategic acquisitions and investments, besides to support general corporate purposes.

The public issue includes a reservation of equity shares for subscription by eligible employees.

Ebixcash is a technology enabled provider of digital products and services in the B2C, B2B and financial technology arena, through an integrated business model.

The company business encompasses four primary segments, payment solutions, travel, financial technologies, and BPO services and start-up initiatives.

As of December 31, it has over 6.5 lakh physical agent distribution locations throughout India and Southeast Asia for payment solutions, remittance, travel, and insurance products.

Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, YES Securities (India) are the book running lead managers that will advise the company on the IPO.