11,000 per cent returns: Multibagger small-cap company updates on the status of the acquisition process of Ebix Inc., complete details inside!
The company has a market cap of over Rs 1,200 crore with a 5-year stock price compound annual growth rate (CAGR) of 180 per cent.
On Tuesday, the shares of Eraaya Lifespaces Limited surged 0.30 per cent to Rs 800.10 per share from its previous closing of Rs 799.90 with an intraday high of Rs 820 and an intraday low of Rs 785. The stock’s 52-week high is Rs 840 and its 52-week low is Rs 13.32. The company's shares saw a spurt in volume by more than 3 times on BSE.
Eraaya Lifespaces Limited has provided an update on its acquisition of Ebix Inc. They recently made a significant step forward by remitting an initial payment of USD 12 million (approximately Rs 101 crore) on July 16, 2024. This brings the total remitted amount to USD 21.75 million (approximately Rs 181 crore) so far. They are committed to completing the acquisition process and plan to remit an additional USD 35 million (approximately Rs 293 crore) by the end of July 2024.
Recall that Eraaya Lifespaces Limited emerged as the winner in the auction process overseen by the U.S. Bankruptcy Court. Their consortium's bid was the highest and best, valuing Ebix at USD 361 million (approximately Rs 3,009 crore). The acquisition will be finalized through a court-approved plan of reorganization for Ebix under Chapter 11. Currently, negotiations are ongoing between Eraaya Lifespaces Limited, Ebix, its creditors and other stakeholders. The court has already allowed creditors to vote on the plan and scheduled a hearing to determine its approval. If successful, the acquisition will grant the consortium ownership of 100 per cent of Ebix's equity, including assets and certain liabilities of its worldwide subsidiaries.
About EBIX INC.:
Ebix, Inc. (EBIXQ) is a software company focusing on the insurance, financial and healthcare industries. They offer a wide range of solutions, from infrastructure exchanges and agency systems to custom software development, catering to all participants in the insurance sector. Their "Phygital" approach combines a vast network of physical distribution points in Southeast Asia with an online digital platform. EbixCash, their financial exchange arm, handles domestic and international money transfers, foreign exchange, travel services, and more, establishing itself as a leader in India's remittance and airport forex markets. Additionally, EbixCash's Via and Mercury travel platforms hold a significant presence in Southeast Asia. With a global network of offices and expertise in SaaS platforms, Ebix processes over USD 100 billion in insurance premiums annually and employs thousands of insurance and technology professionals to support clients across the world.
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About Eraaya Lifespaces Limited
Eraaya Lifespaces, a leading lifestyle and hospitality company, curates unforgettable experiences that blend luxury, comfort, and style. Rooted in Indian heritage, Eraaya offers unique escapes in iconic destinations and creates immersive environments beyond just living. Their commitment to excellence extends to flawless events, innovative content, and creating lasting memories. Eraaya seeks to expand its horizons through strategic acquisitions, leveraging its strong foundation and vision to explore new business ventures. This journey positions Eraaya to drive innovation, create stakeholder value, and shape the future of business in an ever-evolving market.
According to Quarterly Results, the company reported net sales of Rs 2 crore in Q4FY24 and net profit increased by 1,887.5 per cent to Rs 0.95 crore in Q4FY24 compared to net profit of Rs 0.05 crore in Q4FY23. In its annual results, the net sales increased by 1,52,311 per cent to Rs 297.20 crore and net profit increased by 341.6 per cent to Rs 0.34 crore in FY24 over FY23.
The company has a market cap of over Rs 1,200 crore with a 5-year stock price compound annual growth rate (CAGR) of 180 per cent. The stock gave multibagger returns of 6,200 per cent in just 1 year and a whopping 11,000 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and is not investment advice.
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