EBIXCASH IPO contains Rs 60,000 million in primary issues. They have received in-principle approval from BSE and NSE to list the IPO. EBIXCASH is a financial technology service provider to B2B and B2C customers.
EBIXCASH offers services in the travel, financial technology, and business process outsourcing sectors. They offer a variety of products and services in India and 75 international locations operating in B2B, B2C, and B2B2C segments.
EBIXCASH provides front-end focused domestic and international remittances, FOREX, Aadhaar Enabled Payment Services (AEPS), PoS, ticketing, and back-end focused SaaS self-hosted solutions for the financial sector.
EBIXCASH IPO Objectives:
Here are a few quick reasons why EBIXCASH is going public.
- The fund will be used for meeting the working capital requirements of subsidiaries - Ebix Travels Private Limited and EbixCash World Money Limited.
- The company will use the fund to purchase compulsorily convertible debentures from Ebix Asia Holdings Inc, Mauritius.
- They will use the money to finance strategic acquisitions, investments, and general corporate purposes.
Why should you invest in the EBIXCASH IPO?
Below are your top two reasons:
- India’s ITeS market was estimated at USD37 billion in 2020, with 90% driven by export. The industry is expected to grow by 5-7% CAGR between 2020-2025.
- India’s internet penetration will likely reach 75% by 2025, led by 4G, Fiber To The Home (“FTTH”) Services, increasing scopes for internet-enabled services.
EBIXCASH Noteworthy Highlights:
- According to a CRISIL report, ECASH ranked second in profit after tax of USD 2.3 billion in 2020 and 2021.
EBIXCASH Financials
Particulars | FY21 | FY20 |
---|---|---|
Revenue From Operation | Rs 41,525.33 million | Rs 21,700.22 million |
EBITDA | 5,117.29 | 4,965.02 |
Profit After Tax | Rs 2.3 billion | Rs 2.4 billion |
EPS | 939.75 | 962.98 |
ROE | 5.92% | 7.61% |
Know before investing
Strengths
3Has an integrated business model, which is a one-stop-shop for B2B, B2C and B2B2C.
They operate in regulated industries with a large network having high entry barrier.
They have multiple cross-selling opportunities and a wide reach for customer acquisition.
Risks
3Any failure to generate continuous income from fee and commission-based activities will disrupt their profit potential.
The company is exposed to the typical risks of an internet-enabled company, such as - service disruption, breaches of data etc.
The company’s ability to continuously diversify its product portfolio, or lack thereof, directly impacts profit earnings.
Peer Comparison - PAT ( in Rs million)
Competitors | FY19 | FY20 | FY21 | Dividend Yield |
---|---|---|---|---|
One 97 Communications Ltd (PayTM) | 17.01 | 29.42 | 42.26 | - |
One Mobikwik Systems Limited | 1.26 | 1.02 | 1.08 | - |
Unimoni Financial Services Limited | 0.09 | 0.25 | 0.10 | - |
Paul Merchants Limited | 0.22 | 0.26 | 0.33 | - |
Fino Payments Bank* | 0.62 | 0.32 | 0.20 | - |
Wall Street Finance Limited | 0.00 | 0.01 | 0.05 | - |
Thomas Cook (India) Limited | 0.89 | 0.18 | 2.95 | - |
Easy Trip Planners Limited | 0.24 | 0.33 | 0.61 | - |
MakeMyTrip Limited | 11.74 | 31.73 | 4.16 | - |