EbixCash IPO: A Comprehensive Guide to India's Leading Digital Payment Solutions Provider

EbixCash Limited, one of India's leading digital payment solutions providers, is gearing up for its much-anticipated IPO. The company, a subsidiary of Ebix Inc., aims to raise ₹6,000 crore to strengthen its digital ecosystem in India. This IPO is attracting significant attention due to the growing demand for digital payment services and the company's diverse portfolio.

Founded in 2017, EbixCash Limited operates in the B2C, B2B, and financial technology sectors, offering services such as foreign exchange, remittances, insurance, travel services, and prepaid gift cards. With over 600,000 physical agent distribution outlets, it plays a significant role in India’s digital payments ecosystem.

The EbixCash IPO is expected to raise ₹6,000 crore through a fresh issue of shares. While the price band has not yet been disclosed, the face value is set at ₹1 per share. The IPO will be listed on both the BSE and NSE, with allocations planned for 50% Qualified Institutional Buyers (QIB), 15% Non-Institutional Investors (NII), and 35% Retail Individual Investors (RII).

The IPO will follow the Book Building Process, allowing institutional and retail investors to bid within the price band.

The funds raised from the IPO will be primarily used for working capital requirements (₹1,035.02 crore), purchase of debentures (₹2,421.22 crore), and interest payments on those debentures (₹326.34 crore). Remaining proceeds will be used for strategic acquisitions and general corporate purposes.

EbixCash’s net sales have shown steady growth over the years, with ₹343.99 crore in 2017 and ₹294.15 crore in 2021. Their earnings per share (EPS) for FY21 was ₹2.66, and their total expenditure has consistently been well below revenue. The company operates within a market that has an industry P/E of 5.92x, which positions them favorably for investors looking for solid growth potential.

The EbixCash IPO is seeing a premium of around ₹50-55 in the grey market, indicating strong investor demand. GMP figures are likely to rise closer to the listing date.

India's ITES market is valued at approximately US$40 billion, with a Compound Annual Growth Rate (CAGR) of 5-7% expected over the next five years. As a major player in this space, EbixCash is positioned to benefit from these favorable market conditions.

EbixCash is well-positioned to benefit from the growing digital payments ecosystem in India. The company's diversified portfolio, including insurance, remittances, and prepaid cards, strengthens its market position. Investors interested in tapping into India's digital revolution may find EbixCash to be an attractive investment.

Investors can apply for the EbixCash IPO through the ASBA method or via brokerage platforms such as Zerodha, Groww, and Upstox. The subscription dates and price band will be updated once officially announced.