Penny stock at Rs 5.04 and promoters & FIIs increase stake: This small-cap company plan support agreement for the acquisition of 100 per cent of the equity of Ebix Inc

From Rs 3.01 per share (52-week low) to Rs 5.04 per share, the stock is up by 67.44 per cent.

Vikas Lifecare Limited (VLL) has announced positive developments regarding their participation in a consortium aiming to acquire Ebix Inc. The consortium, led by Eraaya Lifespaces Limited, has secured approval from Ebix's independent directors for their Plan Support Agreement. This agreement outlines the terms of the acquisition, which involves Vikas Lifecare acting as the "stalking horse bidder" for Ebix's entire equity (100 per cent).

As part of the agreement, the consortium has submitted a 5 per cetn cash deposit to move forward. The acquisition process will be conducted through a Chapter 11 Plan of Reorganization, negotiated between the consortium, major Ebix stakeholders, and subject to approval by the US Bankruptcy Court. This plan aims to help Ebix Inc. and its affiliated debtors emerge from Chapter 11. The proposal entails the consortium acquiring all of Ebix's equity, encompassing assets and liabilities of its global subsidiaries (excluding those of the North American arm) with any exceptions being determined by the Stalking Horse Plan Support Agreement. The consortium, which includes Vikas Lifecare, has expressed its commitment to collaborating with Ebix representatives to facilitate a successful exit from Chapter 11 through the sponsored plan.

About EBIX INC.:

Ebix Inc., a leading international supplier of on-demand software and e-commerce services (NASDAQ: EBIX), offers end-to-end solutions across insurance, finance, and healthcare. Their "Phygital" strategy combines a massive physical distribution network of 3,20,000 outlets in Southeast Asia with an omni-channel online platform. EbixCash, their financial exchange arm, dominates India's money remittance market, processing over USD 5 billion annually and handling foreign exchange transactions exceeding USD 4.8 billion yearly at 32 major airports. EbixCash's travel arm, Via and Mercury, is a Southeast Asian leader with over 5,00,000 agents, 18,000 corporate clients, and an estimated USD 2.5 billion in annual gross merchandise value. With a global presence in over 50 offices and powering exchanges across insurance (life, finance, health, and property & casualty), Ebix facilitates over USD 100 billion in annual insurance premiums while employing thousands of insurance and financial technology professionals to serve customers on six continents.

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About Vikas Lifecare Ltd

Vikas Lifecare Limited, a dynamic and diversified business entity, is renowned for its robust operations in polymer and rubber compounds along with speciality additives for plastics and rubbers. As an ISO 9001:2015 certified company, it serves as a Del-Credere agent for ONGC Petro Additions Limited, and its subsidiary Genesis Gas Solutions Pvt. Ltd. is a leader in smart gas metering in India. The company has recently broadened its portfolio to include FMCG, agro-products, and infrastructure, further diversifying into entertainment with a focus on film production. Listed on both NSE and BSE, Vikas Lifecare continues to expand its business horizons aggressively.

In March 2024, the promoter of the company bought 3 crore shares and FIIs bought 6.7 crore shares and increased their stake to 12.17 per cent and 4.08 per cent respectively in April 2024 compared to 11.35 per cent and 0.33 per cent, respectively in March 2023.

Today, shares of Vikas Lifecare Limited gained 1.20 per cent to an intraday high of Rs 5.04 per share from its previous closing of Rs 4.98 per share. The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 3.01. The company has a market cap of over Rs 800 crore. From Rs 3.01 per share (52-week low) to Rs 5.04 per share, the stock is up by 67.44 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.