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Ebix Inc Bankruptcy News: Fintech firm Ebix Inc, led by veteran entrepreneur Robin Raina, is in trouble. After defaulting on the loan, this company has applied for bankruptcy in the court of North Texas, USA. The news comes at a time when EbixCash, the Indian arm of Ebix Inc., has filed for an IPO with SEBI. According to a Business Today report, Ebix Inc’s bankruptcy filing in the US may affect the Indian unit. However, nothing has been officially said about this effect by the company.
What is the connection between the two companies?
Ebix Inc. Talking about, it is a US based holding company listed on NASDAQ stock exchange. It has no promoter or controlling person with significant equity. Its major shareholders include Robin Raina, BlackRock and Vanguard Group. In this, Robin Raina is holding the post of Chairman and CEO of the company.
How will it affect the Indian company?
Whereas, the Indian unit i.e. EbixCash is a step-down subsidiary of Ebix Inc. Ebix Inc. has a wholly owned subsidiary, Ebix Singapore Pte. This Singapore-based subsidiary owns 100 percent stake in Indian company ie EbixCash, making it a step-down subsidiary of Ebix Inc. It is likely that a direct subsidiary, Ebix Singapore, will be embroiled in bankruptcy proceedings, reports Business Today. This may affect the Indian company EbixCash. Let us tell you that brands like Ebix and EbixCash are owned by Ebix Inc. These brands are used by EbixCash India.
Indian entity EbixCash Ltd has no debt in India. However, it has taken loans from the parent company to acquire companies in India. The Indian unit was planning to launch an IPO and pay $350 million from the proceeds.