Vikas Lifecare Remits Rs 117 Cr For The Acquisition Process of Ebix Inc

Vikas Lifecare's shares were up at Rs 5.14 a share on Monday following the company's announcement of updates regarding the acquisition process of Ebix Inc. The consortium remitted USD 14 million (roughly Rs 117 crores) on July 26, 2024, bringing the total amount paid so far to USD 35.75 million (roughly Rs 299 crores). Additional payments of USD 6.60 million (about Rs. 55 crores) and USD 14 million (approximately Rs. 117 crores) are to be made by July 2024, with the remaining balance to be paid by August 2024.

Following an auction process supervised by the U.S. Bankruptcy Court, the consortium led by Eraaya Lifespaces Limited was declared the winner with an ascribed enterprise value of USD 361 million (roughly Rs 3,009 crores). This bid was approved and accepted as the highest and best bid for Ebix. Subject to further discussions between the consortium, Ebix, its creditors, and other stakeholders, the acquisition will be carried out under Ebix's Plan of Reorganisation, which was presented in its Chapter 11 proceedings. The U.S. Bankruptcy Court set a hearing to discuss whether to approve the Plan of Reorganisation and permitted it to be forwarded to creditors for voting.

Vikas Lifecare Limited (VLL) has provided updates on the acquisition agreement comprising Ebix Inc. on July 17, 2024. A total of USD 12 million (about Rs. 101 crores) has been remitted by the consortium led by Eraaya Lifespaces Limited, and an additional USD 35 million (roughly Rs. 293 crores) will be remitted by July 2024. As required by the Stalking Horse Plan Support Agreement, The consortium had already made the USD 7.25 million (approximately Rs 61.50 crores) cash deposit. It then sent another USD 2.5 million (approximately Rs 21 crores) and the previously mentioned USD 12 million (approximately Rs 101 crores), for a total of USD 21.75 million (approximately Rs 181 crores) deposited so far towards the acquisition process.

Compared to a net loss of Rs. 1.80 crores for the quarter ending March 31, 2024, Vikas Lifecare reported a net loss of Rs. 2.82 crores for the period ending June 30, 2024. As of June 30, 2023, the firm reported a net profit of Rs. 12.04 crores. In comparison to the Rs. 136.27 crores reported for the period ended March 31, 2024, Vikas Lifecare has recorded a total income of Rs. 94.33 crores for the period ended June 30, 2024. The company declared total revenue for the quarter that ended June 30, 2023, to be Rs. 110.51 crores.

The ISO 9001:2015 certified Vikas Lifecare Limited (VLL) is primarily involved in the production and distribution of polymer and rubber compounds, as well as speciality additives for plastics and synthetic and natural rubber.