Wednesday, December 20, 2023

US bankruptcy filing: Possible ownership shift for Ebix's India business

 MUMBAI: EbixCash is probably going to see possession change after its US-based parent Ebix Inc defaulted on some loans. Ebix Inc claims its Indian unit EbixCash through a holding organization in Singapore.

In the mean time, EbixCash said that its India activities are unaffected by the Section 11 cycle embraced in the US by its parent organization.

According to the company, "Ebix's approximately 200 affiliates outside of the US are not included in the Chapter 11 filing." "The Chapter 11 proceedings apply to Ebix entities in the US only." The Section 11 cycle commands a partition among global and US substances, the organization added.

Ebix Inc had procured a sizeable forex and pre-loaded card business in the nation following the acquisition of Centrum Direct from Chandir Gidwani-advanced Centrum and Itz Money from Ashok Goel's Essel Gathering. It just so happens, Gidwani has shown interest in reacquiring the forex business.

Ebix's Indian tasks have an approved vendor II permit, aside from those for cash move and prepaid guarantor from RBI.

Ebix was planning an IPO through which it would repay its parent with convertible bonds worth Rs 335 crore. By and large, Ebix has siphoned in near $800 million for its acquisitions in India, and the Indian tasks owe around $617 million to the parent.

Ebix Money India had plans to reimburse near $350 million through the returns of a proposed Initial public offering assessed to be Rs 6,000 crore. Albeit the draft plan was recorded last year, the parent's liquidation would imply that the Initial public offering won't happen in the current structure. RBI will likewise limit the bringing home of capital, given the parent's chapter 11.

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