Eraaya Lifespaces share price hits 5% upper circuit for sixth straight session, touches fresh record; here’s why

Multibagger Stock: Eraaya Lifespaces share price were locked in 5% upper circuit for the sixth straight session, and touched 52-week high on Wednesday's trade. The company announced in a filing with the exchange that it has successfully completed the acquisition of Ebix Inc and will be raising funds of up to ₹1,028.7 crores through a Preferential Issue.

Further, the company said that in order to strengthen the company's long-term financial resources and in light of recent events, the board approved additional fund raising through the creation, issuance, and allotment of up to 1,27,00,000 fully convertible warrants, each of which is convertible into an equal number of fully paid-up equity shares with a face value of ₹10.

Eraaya Lifespaces bails out Ebix from bankruptcy proceedings

Last week, Eraaya Lifespaces finalised the payment of $151.577 million ( ₹1,273.25 crore) to acquire Ebix Inc. USA and its global subsidiaries. This acquisition marks the conclusion of the Chapter 11 proceedings for Ebix Inc, and Eraaya will now act as the holding company for Ebix Inc and all its subsidiaries. Ebix is stepping into a new phase with this acquisition, as it eliminates its debt and can now concentrate on growing its business activities.

Eraaya's investment in Ebix is not going to have a adverse impact on any of Ebix's responsibilities in any location, as the company will carry on with its regular operations.

Following a successful bid in June 2024, Eraaya’s consortium emerged as the top bidder in the auction overseen by the US Bankruptcy Court to acquire Ebix Inc. and its global subsidiaries. The acquisition includes full ownership of Ebix Inc. and its associated assets and liabilities at an enterprise value estimated at USD 361 Million (about ₹3,009 crores) approx. This significant milestone marks a transformative moment for both Eraaya and Ebix, ushering in a future filled with exciting new opportunities.

Eraaya Lifespaces share price

Eraaya Lifespaces share price today opened at an intraday high of ₹1096.75 apiece on BSE. Eraaya Lifespaces shares have risen by 6,682.62% in one year and by a staggering 14,720.95%% in the past three years. The company has a market capitalisation of ₹2,016.30 crore on BSE.

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