MUMBAI: EbixCash is expected to undergo a change in ownership of its US-based parent company. Ibex Company Declared bankruptcy. Ebix Inc owns its Indian unit EbixCash through a holding company in Singapore.
Meanwhile, EbixCash said its operations in India are not affected by its parent company’s Chapter 11 process in the US.
“The Chapter 11 proceedings apply only to Ebix entities in the United States, and nearly 200 Ebix subsidiaries outside the United States are not included in the Chapter 11 filing,” the company said. The company said the Chapter 11 process imposes a separation between international and US entities. Total.
Ebix Inc has acquired a major foreign exchange and prepaid card player in the country after buying Centrum Direct from Chandir Gidwani-promoted Centrum and Itz Cash from Ashok Goel’s Essel Group. Moreover, Gidwani has shown interest in resuming foreign exchange activities.
Ebix’s Indian operations have an Authorized Distributor II license, except those for Money Transfer and Prepaid Issuer from RBI.
The company was planning an IPO in which Ebix would redeem the Rs 335 crore held by the parent company in the form of convertible debentures. In total, Ebix has invested approximately US$800 million in its acquisitions in India, and the Indian operations owe approximately US$617 million to the parent company.
Ebix Cash India has planned to repay approximately $350 million from the proceeds of its proposed initial public offering of approximately Rs 6,000 crore. Although a draft prospectus was submitted last year, the bankruptcy of the parent company means that the initial public offering will not take place in its current form. The Reserve Bank of India will also restrict repatriation of capital, in view of the bankruptcy of the parent company.
