Eraaya Lifespaces Okays Fundraising Proposal Via QIP; Floor Price At Rs 798.40

Eraaya Lifespaces announced today that it received in-principle approval from the BSE for the QIP Issue based on a meeting of the Fund Raising Committee dated August 08, 2024.

The Board approved the issue's opening today, August 8, 2024, and it has a size of Rs 250 crore. The floor price of Rs 798.40 per equity share for the issue was also agreed by the board of directors.

"The 'relevant date' for the purpose of the Issue, in terms of Regulation 171(b)(i) of the SEBI ICDR Regulations, is August 08, 2024, and the Floor Price in respect of the Issue has been determined according to the same, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations. The Issue price will be determined by the Company in consultation with the book-running lead managers appointed for the Issue. Further, pursuant to Regulation 176(1) of the SEBI ICDR Regulations and in accordance with the approval of the Shareholders accorded through a special resolution passed on July 29, 2024, through ExtraOrdinary General Meeting, the Company may at its discretion offer a discount of not more than 5% on the floor price for the Issue," informed Eraaya Lifespaces to stock exchanges.

The plan support agreement for the acquisition of Ebix Inc. has successfully completed the process of final approval at the bankruptcy courts in Dallas, Texas, United States, according to a recent announcement made by Eraaya Lifespaces on August 8, 2024. Following an auction process supervised by the U.S. Bankruptcy Court, the Consortium led by Eraaya was declared the winner, with an estimated enterprise value of USD 361 million. The bid to acquire 100% of Ebix Inc. was approved and accepted as the highest and best bid for Ebix Inc.

The company released its financial results for the quarter that ended on June 30, 2024, last month. In the quarter that ended in June 2024, the company declared a net profit of 0.95 crore, according to an exchange filing. Contrasting to the net profit of Rs 0.05 crore in the same quarter last year, there has been a spike of 1800%. Its revenue from operations stood at Rs 2.00 crore in Q1FY25 down by 92.74% from Rs 27.53 crore in Q1FY24.

On Thursday, the shares of Eraaya Lifespaces closed on the BSE at Rs 799.90 apiece with a market cap of Rs 1,209.70 Cr.