Eraaya Lifespaces Remits Rs 117 Cr On 100% Acquisition Of The Equity In Ebix

Eraaya Lifespaces Limited is happy to provide updates on the progress of the Ebix Inc. acquisition process. As of July 26, 2024, the consortium has remitted USD 14 million (approximately Rs 117 crores), bringing the total amount paid to date to USD 35.75 million (about Rs 299 crores). The remaining USD 6.60 million (about Rs 55 crore) and USD 14 million (approximately Rs 117 crore) will be paid in July 2024, and the remaining final payment will be remitted around August 2024.

After an auction process supervised by the U.S. Bankruptcy Court, the consortium led by Eraaya Lifespaces Limited emerged as the winner with an ascribed enterprise value of USD 361 million (about 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 put out 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.

100% of the consortium's holding in Ebix, comprising certain liabilities and assets of Ebix's global subsidiaries, is part of the deal.

Recently on 23rd July the Board of Directors of Eraaya Lifespaces considered and approved to replace fully convertible debentures/partly convertible debentures/ non-convertible debentures with warrants with fully convertible debentures/partly convertible debentures/ non-convertible debentures with or without warrant as well as replace an amount not exceeding to Rs. 1275 Crore or an amount equivalent to USD 150 Million, in one or more tranches" with an amount not exceeding to Rs. 1275 Crore or an amount equivalent in foreign currency, in one or more tranches.

Eraaya Lifespaces Limited provided an update on the acquisition process of Ebix Inc. on July 17. The company stated that USD 12 million (approximately Rs 101 crores) had been remitted on July 16 and that USD 35 million (approximately Rs 293 crores) would be remitted by July 2024.

The government of Dubai recently authorised the establishment of a totally owned subsidiary of the company under the name "ERAAYA LIFESTYLE VACATION HOMES L.L.C." on July 13, 2024, and granted a certificate of establishment for the same.

On Friday, the shares of Eraaya Lifespaces ended 0.03% lower at Rs 799.80 apiece with a market cap of Rs 1,209.55 Cr.