Multibagger small-cap company incorporates a new subsidiary in Dubai, UAE – Details inside!

The stock gave multibagger returns of 6,165 per cent in just 1 year and over 11,000 per cent in 3 years.

Today, the shares of Eraaya Lifespaces Limited jumped 2.50 per cent to Rs 820 per share from its previous closing of Rs 800 per share. The stock’s 52-week high is Rs 839.95 and its 52-week low is Rs 13.39

Eraaya Lifespaces Limited (formerly Justride Enterprises Limited) has successfully incorporated a wholly owned subsidiary named "ERAAYA LIFESTYLE VACATION HOMES L.L.C" in Dubai, UAE. This new subsidiary is licensed for vacation home rentals with an authorized share capital of AED 10,000,000. The acquisition is not a related party transaction and Eraaya Lifespaces Limited has acquired 100 per cent ownership through a cash investment. This move allows Eraaya Lifespaces Limited to enter the vacation home rental industry, expanding its business beyond its core operations. While no governmental or regulatory approvals were needed for this incorporation, further details regarding the timeline for completion and the specific amount invested are not yet available.

Earlier, Eraaya Lifespaces Limited successfully won the bid to acquire 100 per cent of Ebix Inc.'s equity for an enterprise value of approximately USD 361 million (approximately Rs 3,009 crore), as determined by the U.S. Bankruptcy Court following an auction process. This acquisition, which includes all of Ebix's equity, certain assets, and liabilities from its global subsidiaries, will be executed through Ebix's Plan of Reorganization, currently under negotiation and scheduled for creditor voting by June 27, 2024, with a court hearing for approval on July 30, 2024. Ebix's senior management supports the acquisition, and the consortium led by Eraaya Lifespaces has already deposited a USD 7.25 million commitment fee with plans to pay an additional USD 42.5 million in instalments by July 23, 2024 and the remaining USD 95.25 million by July 30, 2024.

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 6,165 per cent in just 1 year and over 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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