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US bankruptcy filing: Ebix’s India business may change hands | India News – Times of India

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MUMBAI: EbixCash is likely to see ownership change after its US-based parent Ebix Inc declared bankruptcy. Ebix Inc owns its Indian unit EbixCash through a holding company in Singapore.
Meanwhile, EbixCash said that its India operations are unaffected by the Chapter 11 process undertaken in the US by its parent company.
“The Chapter 11 proceedings apply to Ebix entities in the US only and Ebix’s approximately 200 affiliates outside the US are not included in the Chapter 11 filing,” the company said.The Chapter 11 process mandates a separation between international and US entities, the company added.
Ebix Inc had acquired a sizeable forex and prepaid card business in the country following the purchase of Centrum Direct from Chandir Gidwani-promoted Centrum and Itz Cash from Ashok Goel’s Essel Group. Incidentally, Gidwani has shown interest in reacquiring the forex business.
Ebix’s Indian operations have an authorised dealer II licence, apart from those for money transfer and prepaid issuer from RBI.
The company was planning an IPO through which Ebix would repay Rs 335 crore owned by its parent in the form of convertible bonds. Overall, Ebix has pumped in close to $800 million for its acquisitions in India, and the Indian operations owe around $617 million to the parent.
Ebix Cash India had plans to repay close to $350 million through the proceeds of a proposed IPO estimated to be Rs 6,000 crore. Although the draft prospectus was filed last year, the parent’s bankruptcy would mean that the IPO will not take place in the present form. RBI will also restrict the repatriation of capital, given the parent’s bankruptcy.



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