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

Everything you need to know about the upcoming EbixCash IPO, including key details, subscription dates, financials, and why it’s generating so much buzz.

Updated : 4 months ago

Categories: Finance, IPO, Digital Payments, EbixCash, Investment

Tags: EbixCash IPO price, EbixCash IPO date, EbixCash IPO GMP, EbixCash IPO subscription, Digital payment IPO India, EbixCash investment, EbixCash financials, EbixCash IPO details

EbixCash IPO: What You Should Know

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.

Company Overview

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.

IPO Details

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).

IPO Subscription Method

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

Use of Proceeds

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.

Financial Overview

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.

Grey Market Premium (GMP)

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.

Market Context

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.

Why Should You Invest in EbixCash?

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.

How to Apply for the EbixCash IPO

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.

EbixCash IPO: Frequently Asked Questions

When will the EbixCash IPO open for subscription?
The exact dates are yet to be announced, but the IPO is expected to open by late 2024.
What is the price band for the EbixCash IPO?
The price band has not been disclosed yet but is expected to be released closer to the listing date.
How much is EbixCash aiming to raise through its IPO?
EbixCash is looking to raise ₹6,000 crore through this IPO.
What is the Grey Market Premium (GMP) for the EbixCash IPO?
The GMP is around ₹50-55, showing strong investor demand.
What is the minimum investment required for the EbixCash IPO?
The minimum investment is expected to be ₹15,000 for one lot of 100 shares.
How can I apply for the EbixCash IPO?
You can apply through ASBA via your bank or online platforms like Zerodha, Groww, or Upstox.
What is EbixCash’s core business?
EbixCash is a technology-enabled provider of digital products and services in the financial technology sector, with key operations in foreign exchange, insurance, and remittances.