11,000 per cent returns: Multibagger small-cap company updates on the status of the acquisition process of Ebix Inc., complete details inside!
The stock gave multibagger returns of 6,200 per cent in just 1 year and a whopping 11,000 per cent in 3 years.
Eraaya Lifespaces Limited has made significant progress in its acquisition of Ebix Inc. The consortium leading the acquisition remitted an additional USD 14 million (approximately Rs 117 crore) on July 26, 2024, bringing the total amount paid to date to USD 35.75 million (approximately Rs 299 crore). This substantial investment underscores the consortium's commitment to the acquisition and its confidence in the potential of Ebix Inc. Further payments totalling USD 20.6 million (approximately Rs 172 crore) are scheduled for completion within July 2024, with the final payment to be made in August 2024.
The consortium led by Eraaya Lifespaces Limited emerged as the successful bidder for Ebix Inc. following a competitive auction process overseen by the U.S. Bankruptcy Court. The consortium's bid was valued at USD 361 million (approximately Rs 3,009 crore), reflecting the significant potential of the acquired company. The acquisition is set to be finalized through Ebix Inc.'s Plan of Reorganization, which is currently being negotiated with creditors and other stakeholders. The U.S. Bankruptcy Court has approved the plan for creditor voting and has scheduled a hearing to consider its final approval.
Upon completion, the acquisition will grant the consortium 100 per cent ownership of Ebix Inc., including its assets and certain liabilities across its global subsidiaries. This strategic move positions Eraaya Lifespaces Limited for substantial growth and expansion in the [industry sector]. The successful integration of Ebix Inc. into the consortium's operations is expected to create significant value for shareholders and other stakeholders.
On Monday, the shares of Eraaya Lifespaces Limited gained 2.50 per cent to Rs 819.80 per share from its previous closing of Rs 799.80 with an intraday high of Rs 819.80 and an intraday low of Rs 799.95. The stock’s 52-week high is Rs 840 and its 52-week low is Rs 13.32.
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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 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 6,200 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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