EbixCash’s IPO filing doesn’t disclose an adverse court order
NEW DELHI : EbixCash Ltd, payment services company that plans to go public, is yet to disclose in its draft share sale documents an adverse arbitration order passed by a Singapore court in June that could cost it ₹100-200 crore. The firm, a unit of Nasdaq-listed Ebix Inc., received the markets regulator’s approval for a ₹6,000 crore IPO in April. EbixCash purchased gift card provider ITZCash in 2017 and rebranded it to Ebix Payment Services (EPS), which now forms a big chunk of its business.
Vyoman Tradelink Ltd—the original promoter of ITZCash—continues to hold a 20% stake in the business and took Ebix to an arbitration court in 2019 over its failure to make some earn-out payments. According to a person close with the matter, the Singapore International Arbitration Centre (SIAC) ordered Ebix to buy the remaining 20% from Vyoman and issued a penalty, a development the firm has not disclosed yet as it heads for an IPO. “On 1 June 2023, SIAC ordered Ebix to buy the remaining 20% from the original promoters," the person said on condition of anonymity.
SIAC asked Ebix to purchase the stake at a valuation finalized by an independent valuer. The valuation process is ongoing, but the purchase could cost EbixCash ₹100-200 crore, the person said. In a separate order, SIAC also asked Ebix to pay $1 million in cost awards to Vyoman within 30 days, plus interest in case of delay.
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