IPOS - Ebix stock surges 25% after Indian subsidiary files prospectus for $787M IPO

Application software firm Ebix (NASDAQ:EBIX) stock jumped as much as 35% in early trading, Thursday, after its Indian subsidiary filed a draft red herring prospectus with the Securities and Exchange Board of India on Wednesday for an initial public offering aggregating up to INR 60B or $787M. Shares of EBIX have since pulled back to roughly $40 per share, though still elevated by 25%. EbixCash will use approximately $350M of the IPO proceeds for the purchase of outstanding compulsorily convertible debentures from Ebix Asia Holdings, Mauritius and in turn payment to Ebix. ~$130M would be used for working capital requirements of EbixCash and its subsidiaries. And the remaining proceeds would be used toward acquisitions and other investments. On Wednesday, Ebix reported Q4 EPS of $0.66 and revenue of $266.83M.

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Ebix stock surges 25% after Indian subsidiary files prospectus for $787M IPO