10,000 per cent returns: Multibagger stock in focus as company secures final approval to acquire Ebix Inc., Complete details inside!

The stock gave multibagger returns of 6,125 per cent in just 1 year and a whopping 10,000 per cent in 2 years.

Eraaya Lifespaces Limited has completed the acquisition of Ebix Inc. after a rigorous legal process. The company, as part of a consortium, emerged as the highest bidder for 100 per cent equity of Ebix Inc. during an auction overseen by the U.S. Bankruptcy Court. The winning bid was valued at a substantial USD 361 million (approximately INR 3,009 crores). This acquisition marks a significant milestone for Eraaya Lifespaces as it expands its global footprint.

The acquisition of Ebix Inc. was executed through a meticulously negotiated Plan of Reorganization under Chapter 11 bankruptcy proceedings. This complex process involved extensive negotiations with creditors, stakeholders, and Ebix Inc. itself. After gaining creditor approval, the Plan of Reorganization underwent a thorough review by the U.S. Bankruptcy Court, culminating in the final approval. This legal victory paves the way for Eraaya Lifespaces to fully integrate Ebix Inc. into its operations.

As part of the acquisition, the consortium led by Eraaya Lifespaces will acquire 100 per cent of Ebix Inc.'s equity, encompassing its assets and certain liabilities in global subsidiaries. To facilitate the transaction, the consortium has already deposited USD 56.327 million (approximately Rs 466.95 crore). The remaining balance of USD 95.25 million (approximately Rs 789.60 crore) is scheduled for payment by the end of August 2024. With this final payment, Eraaya Lifespaces will complete the acquisition of Ebix Inc., marking a new chapter in the company's growth strategy.

On Monday, the shares of Eraaya Lifespaces Limited gained 0.4 per cent to Rs 800 per share from its previous closing of Rs 796.80. The stock’s 52-week high is Rs 840 and its 52-week low is Rs 13.32.

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 a 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 6,125 per cent in just 1 year and a whopping 10,000 per cent in 2 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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