EbixCash up for sale but buyers not in sight 

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In less than three months of filing for bankruptcy in the US, Ebix is said to have put its Indian operations on the block. The decision to sell EbixCash follows the grime or no prospects left for listing the Indian operations. In December 2022, EbixCash has filed its papers for ₹6,000 crore of initial public offering (IPO).

Sources say the IPO plans didn’t glide smoothly even with the market regulator as SEBI had sought for further information on litigations surrounding the company. An updated red herring prospectus hasn’t been filed since.

Meanwhile, with ongoing bankruptcy proceedings in the US firming up, repatriating money from the Indian entity will be seen very critical in the process. “EbixCash is the only potential cash cow for Ebix and with IPO unlikely to go through, the next best solution is to find buyer for the company,” said a highly placed source aware of the matter.

Sources also add that with the US swamped in bankruptcy, EbixCash has the risk of losing its remittance licences as well. “Usually, the banking regulator doesn’t entertain companies to trade their licenses for valuation or to seal a deal”.

Email sent to EbixCash seeking confirmation remained unanswered till press time.

Tough deal

According to sources three key players in the fintech and non-bank space evinced interest in EbixCash. “But it didn’t materialise to even the stage of due diligence because of innumerous legal issues surrounding the company. Ultimately, it’s boiling to reputational issues about the company which makes it tough to predict the downside risk of these pending cases,” said an industry source aware of the development. The hesitation around EbixCash is despite the company holding leadership position in inward money remittance, travel and forex businesses.

These are said to be highly profitable businesses, though people in the know say the 24 acquisitions (more than half of it being India specific) between 2005–2018 has helped it secure the top spot in the country. The company is said to have spent $1.8 billion, including the $150 million spent to acquire ItzCash in 2017.