10,100 per cent returns: Eraaya Lifespaces successfully completes QIP issue, raises Rs 248.50 crore approx. to be utilized towards the acquisition of Ebix Inc.
The stock gave multibagger returns of 5,900 per cent in just 1 year and a whopping 10,100 per cent in 2 years.
Eraaya Lifespaces Ltd has announced the successful completion of its Qualified Institutional Placement (QIP) issue, securing approximately Rs 248.50 crore (USD 29.58 million). This capital infusion is earmarked for the final payment in the acquisition of Ebix Inc., a deal already greenlit by a US Bankruptcy Court. The QIP attracted notable investors such as Ebisu Global Opportunities Fund, Nexpact and Unico Global Opportunities Fund. This is the first phase of Eraaya's funding strategy for the Ebix Inc. acquisition. The company plans to raise additional funds by issuing securities and convertible bonds in the international market.
Eraaya's consortium is on track to complete the Ebix Inc. acquisition.
Earlier this year, Eraaya's consortium emerged victorious in a competitive bidding process by the US Bankruptcy Court, securing the right to acquire 100 per cent of Ebix Inc. at an enterprise value of USD 361 million (Rs 3,009 crore). The acquisition encompasses all of Ebix Inc.'s equity, assets, and certain liabilities within its global subsidiaries. To date, the consortium has deposited USD 56.327 million (Rs 466.95 crore) and is committed to finalising the remaining payment of USD 95.25 million (Rs 789.60 crore) by the end of August 2024.
About the Company
EBIX INC. is a global technology company specializing in on-demand software and e-commerce solutions for the insurance, financial, and healthcare sectors. With operations spanning six continents, the company offers a comprehensive suite of products including infrastructure exchanges, carrier systems, agency management tools, and risk compliance solutions. EBIX's "Phygital" strategy combines its extensive physical distribution network in Southeast Asia with an online platform, driving growth in financial services like remittances, forex, and travel. The company processes billions of dollars in insurance premiums annually, operates in major airports worldwide, and serves millions of customers through its SaaS-based software platforms.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Stock Performance
On Friday, the shares of Eraaya Lifespaces Limited gained 3 per cent to Rs 823.75 per share from its previous closing of Rs 800. The stock’s 52-week high of Rs 840.50 and its 52-week low is Rs 13.98. The stock gave multibagger returns of 5,900 per cent in just 1 year and a whopping 10,100 per cent in 2 years.
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.
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. 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. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and is not investment advice.
Also Read: Debt-free penny stock under Rs 10 hit upper circuit as company is into expansion Europe, Middle-East and Africa (EMEA) and Asia-Pacific (APAC) markets!