Vikas Lifecare Announces Plan Support Agreement For 100% Acquisition of Ebix

On Wednesday, recycling company Vikas Lifecare Limited announced the Plan Support Agreement submitted by "The Consortium" including Vikas Lifecare Limited, as the Stalking Horse Bidder for the acquisition of 100% of the equity of Ebix Inc ("Ebix"), has been approved by the Independent Directors of Ebix. Inc. The Consortium is led by Eraaya Lifespaces Limited (BSE Symbol: ERAAYA | 531035 ISIN: INE432F01024).

The company said in an exchange filing that, "In accordance with the Stalking Horse Plan Support Agreement, The Consortium has also remitted the 5% cash deposit as required to further the process. The Acquisition will be effectuated through a Plan of Reorganization, negotiated between the bidders and major stakeholders of Ebix. Inc. under the Chapter 11 provisions. The Plan would be subject to Bankruptcy Court approval in accordance with the provisions of the United States of America Bankruptcy Code".

"The Stalking Horse Plan Sponsor Agreement has the support of the Ebix Inc. Senior Management led by the Ebix CEO, and The Consortium will to work collaboratively with Ebix Inc representatives to get Ebix Inc. and its affiliated debtors out of Chapter 11 through the sponsored Plan.

The proposal provides for the acquisition of 100% of the equity in Ebix Inc. by The Consortium, which includes assets and liabilities in the worldwide subsidiaries of Ebix (other than liabilities in the North American Company), except as otherwise agreed to by The Consortium in accordance with the Stalking Horse Plan Support Agreement, Company informed SEBI via Exchange filing.

EBIX INC. is a leading international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, EBIX INC., (NASDAQ: EBIX) provides end-to-end solutions ranging from infrastructure exchanges, carrier systems, agency systems and risk compliance solutions to custom software development for all entities involved in the insurance industry. The "Phygital" strategy at EBIX combines 320,000 physical distribution outlets in many Southeast Asian Nations ("ASEAN") countries, to an Omni-channel online digital platform, the Company's EbixCash Financial exchange portfolio includes domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets.

Vikas Lifecare is engaged in the manufacturing and trading of polymer and rubber compounds and speciality additives for plastics, synthetic and natural rubber. The company has most recently diversified its business interests beyond raw materials and forayed into the B2C segment.

Recently, Vikas Lifecare was induced Rs 85 million to its step-down joint venture i.e. IGL Genesis Technologies Ltd, towards CAPEX for establishing the plant at Noida for manufacturing Smart Gas Meters in India. According to the company, the initiative holds great promise for advancing India's capabilities in smart meter manufacturing and contributing to the country's efforts towards modernising its energy infrastructure. VLL has induced further capital of Rs. 85 million for its step-down joint venture, IGL Genesis Technologies Ltd. (IGTL) a joint venture between the company's subsidiary "Genesis Gas Solutions Pvt. Ltd." (GGSPL) and "Indraprastha Gas Ltd." (IGL), to cover the capital expenditures associated with developing a plant in NOIDA, Uttar Pradesh, that will produce smart gas meters for the Indian market.

Vikas Life Care Limited is a micro-cap company with a market cap of Rs 904 crore, whose shares have given a bumper return of 180 per cent to investors in 52 weeks. The 52-week high of the shares of Vikas Life Care Limited is Rs 8 while the 52-week low is Rs 3.