5,623% Return In 5 Years: Eraaya Lifespaces Remitted Rs 310.80 Cr On Acquisition of Ebix Inc

The consortium led by Eraaya has contributed an additional US$ 37 million (approximately Rs 310.80 crores) towards the acquisition of Ebix Inc., Eraaya Lifespaces Limited is happy to announce. Eraaya raised about Rs 248.50 crores by successfully completing the Qualified Institutional Placement (QIP) issuance on August 14, 2024. The corporation has taken steps to raise the remaining funds on the global market by issuing more securities, convertible bonds, and other financial instruments.

Following an auction process supervised by the U.S. Bankruptcy Court, the Consortium led by Eraaya was declared the winner of the bid to acquire 100% Equity of Ebix Inc. at an estimated enterprise value of USD 361 million (Rs 3,009 crores). The bid was approved and accepted as the top bid for Ebix Inc.

Dr Vikas Garg the Vice-Charman of Eraaya Lifespaces commented "We feel immense pride and excitement coming across significant milestones in Eraaya's journey of acquiring Ebix Inc. The strategic acquisition will eminently mark a pivotal moment in our growth and strengthen our position on global scales. The acquisition not only aligns seamlessly with our long-term vision to expand our business portfolio but also enhances our ability to deliver innovative solutions to the industry and the stakeholders at Eraaya.

"I would take this opportunity to extend my deepest gratitude to our stakeholders for the overwhelming support, confidence and trust they have exhibited supporting Eraaya through the acquisition. While I cannot miss to acknowledge the commitment and hard work on the part of our dedicated team, whose relentless efforts made this journey smoother and the achievement possible within an unprecedented constrained time frame. The journey navigating through the complexities of an international acquisition and ensuring a smooth transition reflect the spirit of excellence that defines Eraaya. We are sure we will build on this milestone and continue to drive ahead remaining steadfast in our commitment to delivering exceptional value and fostering continued growth," Vikas Garg further added.

The Consortium is acquiring all of the shares in Ebix Inc. as part of the transaction, along with some assets and liabilities from the company's global subsidiaries. However, the Consortium has already made contributions of USD 93.327 million (about Rs. 783.95 crores) and will make the remaining USD 58.25 million (approximately Rs. 489.30 crores) by August 2024.

Eraaya Lifespaces Limited successfully completed the Qualified Institutional Placement (QIP) issuance on August 15, 2024, raising approximately Rs 248.50 crores, or US$ 29.58 million, to be used towards the acquisition of Ebix Inc. Among the well-known investors in the QIP are Unico Global Opportunities Fund, Nexpact, and Ebisu Global Opportunities Fund. The company's funding plan for the acquisition of Ebix Inc. includes this QIP as a whole. The corporation aims to place more securities, convertible bonds, and other financial instruments on the global market in order to raise the remaining funds.