Rs 3,009 crore bid: Multibagger small-cap stock hit 52-week high as it announces bid for the acquisition of 100 per cent of the equity of Ebix Inc

The stock gave multibagger returns of 6,320 per cent in just 1 year and over 10,000 per cent in 3 years.

Today, the shares of Eraaya Lifespaces Limited hit a 5 per cent upper circuit to Rs 839.95 per share from its previous closing of Rs 800 per share. The stock also made a fresh new 52-week high is Rs 839.95 and its 52-week low is Rs 12.69.

Eraaya Lifespaces Limited is pleased to announce that the bid for the acquisition of 100% of the equity of Ebix Inc. (“Ebix”) submitted by the consortium led by Eraaya has been approved and accepted as the highest and best bid for Ebix and declared as the winner following the auction process overseen by the U.S. Bankruptcy Court. Ebix ascribes the bid at an enterprise value of about USD 361 million. (Rs 3,009 crore approximately).

The acquisition will be effectuated through Ebix’s Plan of Reorganization proposed in its Chapter 11 proceedings, which is subject to ongoing negotiations among the consortium, Ebix, and Ebix’s creditors and other stakeholders. On June 27, 2024, the U.S. Bankruptcy Court allowed the Plan of Reorganization to be sent to creditors for voting and scheduled a hearing to consider approval of the plan for July 30, 2024.

Ebix's senior management team, led by the CEO, has endorsed a consortium's acquisition proposal. This consortium, led by Eraaya Lifespaces Limited, was previously chosen as the lead bidder to buy 100 per cent of Ebix's equity, with approval from Ebix's independent directors. To solidify their bid, the consortium has already deposited a USD 7.25 million commitment fee. They will then make three additional instalments by July 23, 2024, totalling USD 42.5 million. The remaining balance of USD 95.25 million will be paid in full by July 30, 2024. Importantly, the acquisition encompasses all of Ebix's equity ownership by the consortium, along with certain assets and liabilities from Ebix's global subsidiaries.

Also Read: Multibagger penny stock at Rs 1.65 with 4,000 per cent returns hit upper circuit as company to announce fundraising tomorrow!

About EBIX INC.

Ebix, a leading international provider of on-demand software and e-commerce services for insurance, finance, and healthcare, offers comprehensive solutions across the insurance industry – from infrastructure exchanges and custom software development to agency systems and risk compliance. Their unique "Phygital" strategy combines a vast network of physical distribution outlets in Southeast Asia with a user-friendly online platform. EbixCash, their financial arm, is a leader in India's airport foreign exchange and remittance markets, processing billions annually. EbixCash's travel platforms Via and Mercury also solidify their dominance in Southeast Asia's travel exchange sector. With a global presence in over 8 countries, Ebix powers numerous insurance exchanges, facilitating over USD 100 billion in annual premiums. Their team of thousands of insurance and financial technology professionals leverages SaaS-based platforms to deliver software, products, support, and consulting services to a vast clientele across the globe.

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. The stock gave multibagger returns of 6,320 per cent in just 1 year and over 10,000 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.