Last Updated on December 26, 2023 by BFSLTeam BFSLTeam
Driven by growing innovations and a rapidly growing user base, India has the fastest-growing digital payments landscape in the world. A recent study has shown the market could triple in value from $3 trillion in 2023 to $10 trillion by 2026. A relatively new entrant, EbixCash Limited, intends to list itself on the Indian stock exchanges via a Initial Public Offering (IPO). The company has filed its Draft Red Herring Prospectus (DRHP) for an Rs. 6000 crore IPO and received its approval from SEBI. The EbixCash Limited IPO is expected to launch soon.
As an investor, you may want to learn more about this company, its financials, strengths and risks before making any decision. Here’s all you need to know.
Table of Content
EbixCash Limited IPO details
Here are all the available details of the EbixCash Limited IPO:
| IPO opening date | Yet to be announced |
| Closing date | Yet to be announced |
| IPO type | Yet to be announced |
| Listing at | Yet to be announced |
| Total issue size | Rs. 6000 crore (approx.) |
| Fresh issue size | Yet to be announced |
| OFS size | Yet to be announced |
| Face value | Yet to be announced |
| Price range | Yet to be announced |
| Lot size | Yet to be announced |
| Minimum investment amount (retail) | Yet to be announced |
| Maximum investment amount (retail) | Yet to be announced |
Before you invest in the IPO, you should do proper research on the company to assess its value, business model and financial health, among other factors. This will allow you to make an informed and confident investment decision.
Also Read: How does an IPO work?
About the company
EbixCash Limited is the Indian subsidiary of the US-based Ebix Inc, an international company that provides software solutions related to healthcare, insurance and financial services. The Indian company was incorporated in 2002 as a financial service provider. Today, it is a one-stop platform for payments, travel, insurance, healthcare, e-learning and remittances for both B2C and B2B customers.
The company has four business verticals: payment solutions, financial technologies, travel and BPO services and initiatives for start-ups. It has built a comprehensive platform that provides a range of products and services, including forex, prepaid gift cards, POS services, utility payments, ticketing services and more.
In the B2B segment, EbixCash Limited provides BPO services to financial, insurance, travel and telecommunication companies. Under fintech, this company provides SaaS-based systems to financial institutions. Its B2B clients include several of India’s top banks and NBFCs. Outside India, the company serves the needs of businesses in more than 60 countries.
EbixCash is also known for investing in startups in the fintech, agritech, insuretech and healthtech spaces. It has a history of getting involved in strategic acquisitions of complementary businesses, which has allowed it to increase its network size and product offerings.
Besides its digital presence, EbixCash Limited has a massive physical presence, with more than 6.5 lakh distribution outlets in India and South East Asia. In India, the company has a customer base in over 4000 cities and 75,000 villages.
The company aims to provide an omnichannel online platform in India that combines a host of services in the financial, travel and payment solution segments.
EbixCash Limited IPO tentative timetable
Here is the complete timetable of the EbixCash Limited IPO, including its opening date, closing date and listing date.
| Opening date | Yet to be announced |
| Closing date | Yet to be announced |
| Cut-off time for UPI mandate | Yet to be announced |
| Basis of allotment | Yet to be announced |
| Refund initiation date | Yet to be announced |
| Credit of shares of Demat | Yet to be announced |
| Listing date | Yet to be announced |
EbixCash Limited IPO lot size
The following table shows the minimum and maximum lot sizes for various investor categories:
| Application type | Number of lots | Number of shares | Amount |
| Minimum (retail) | Yet to be announced | Yet to be announced | Yet to be announced |
| Maximum (retail) | Yet to be announced | Yet to be announced | Yet to be announced |
| Minimum (S-HNI) | Yet to be announced | Yet to be announced | Yet to be announced |
| Maximum (S-HNI) | Yet to be announced | Yet to be announced | Yet to be announced |
| Minimum (B-HNI) | Yet to be announced | Yet to be announced | Yet to be announced |
| Maximum (B-HNI) | No upper limit | No upper limit | No upper limit |
Company financials
The following table shows some of the important financial details of EbixCash Limited based on its restated financial statements for the previous three financial years.
| Particulars | For the financial year ending (in Rs. million) | ||
| 31st March 2023 | 31st March 2022 | 31st March 2021 | |
| Total assets | 77,337.01 | 71,845.45 | 67,347.00 |
| Total liabilities | 23,933.55 | 24,857.28 | 24,906.29 |
| Total equity | 53,403.46 | 46,988.17 | 42,356.70 |
| Total expenses | 17,442.93 | 11,159.16 | 7,916.04 |
| Total revenue | 26,166.65 | 16,849.84 | 11,869.69 |
| Profit after tax | 7513.87 | 4879.36 | 2431.73 |
| Earnings per share (basic and diluted) | 7.97 | 5.26 | 2.67 |
Also Read: IPO investment strategy: Tips for investing in an IPO
Strengths
Here are some of the notable competitive strengths of EbixCash Limited:
- Strong financial performance
Unlike several of its competitors in the fintech space, EbixCash has shown consistent records of its profitability. In FY2019, FY2020 and FY2021, the company recorded profits of Rs. 4648.90 million, Rs. 2418.97 million and Rs. 2429.15 million, respectively. Since FY2021, it has recorded steady growth in profits as you can see in the above financial details.
- Operations across several regulated industries
EbixCash Ltd operates across several industries like financial services, forex, insurance and payment solutions, which carry stringent regulatory requirements for licenses. Thus, the company’s broad presence gives it a competitive edge. The large distribution network of this company has helped it build a business model that ensures a steady flow of revenue from the different sectors it operates in.
- Track record of successful acquisitions
Since its incorporation, EbixCash Limited has been steadily making acquisitions in the travel, forex, payments and insurance space in India. From 2016 to 2019, the company made more than 26 acquisitions spending a total of $680 million. The company relies on making positive changes in newly acquired companies and helping them achieve profitability.
- One-stop solution for B2B, B2C and B2B2C
The company has built an integrated business model with which it provides a wide range of products and services under four business segments (payment solutions, BPO services, travel and financial services). One of its main attractions for customers is the convenience it offers by combining B2B, B2C and B2B2C services in a single platform.
- Owner of several proprietary technologies
Over the years, EbixCash Limited has created many proprietary technologies that work across Microsoft, Apple, Android and other platforms. The company follows a technology-agnostic approach where it develops tools across different platforms for all users. Its software solutions are highly flexible and customisable, making them suitable for different customer requirements.
Risks involved
Apart from the strengths, you should also check the weaknesses and threats faced by a company about to launch its IPO. Here are the main risks involved with EbixCash Ltd:
- Systems failure or data breach
EbixCash’s business relies significantly on its computer systems and digital platforms that operate applications, KYC verification, customer interface and more. Many of these systems are managed by third-party service providers. Any widespread failure in these systems or a data breach can have negative consequences on the company.
- Dependency on fees and commissions
The key source of revenue for EbixCash Limited is fees and commissions charged for its products and services. Thus, the company’s bottomline depends mostly on the volume of transactions. A range of factors including macroeconomic events, supply and demand, regulations, etc., affect the company’s margins. Most of these factors are outside the company’s direct control.
- Cybersecurity threats
As the country continues to digitalise, cybersecurity threats continue to be a significant threat to information technology systems. Cyber-attacks from malware, ransomware, phishing and other threats are continuing to increase in complexity which presents greater risks to a digital platform like EbixCash. The company’s reputation is dependent on its ability to defend against cyber-attacks as it must protect sensitive customer information.
Summary
EbixCash Limited is a technology-based company that provides a range of payment, financial, insurance and travel-related services and products under one umbrella. It incorporates an integrated business model that allows it to bring the advantages of multiple entities specialising in different business segments within a single platform.
EbixCash intends to raise around Rs. 6000 crore from its upcoming IPO through a completely fresh issuance. There are no existing shareholders who want to offload their current holdings through this IPO. Once launched, it will be the largest Indian IPO of 2023. The company plans to use the proceeds from the upcoming IPO to fund several strategic acquisitions.
If you are interested in the EbixCash Limited IPO, there are several things you should do before investing. Firstly, you should go through the Red Herring Prospectus (RHP) filed with ROC to get the latest data on the financials and other important details of this company. Secondly, open a Demat and trading account to apply for the IPO.
Before investing, assess your risk appetite and financial goals to ensure that your decision is in line with your financial situation. You can also consult a financial advisor for assistance regarding your investment decision.
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