EBIX - Ebix stock tanks over 35% on new short report from Hindenburg Research

Ebix (NASDAQ:EBIX) shares are plunging 36% in Thursday premarket trading after Hindenburg Research published a new short report on the technology-powered conglomerate.  Hindenburg pointed to the company's "massive near-term debt load" in a backdrop of rising interest rates, saying "we see significant solvency risk over the next 12 months." The risk of solvency comes as Ebix (EBIX), which has a market cap of nearly $800M, is planning a $4.5B debut of EbixCash, its wholly-owned Indian subsidiary. The problem is "we think a substantial portion of EbixCash’s gift card revenue is non-existent," according to the report titled "This House of 'Cards' Seems To Have a Glaring Fake Revenue Problem." Note that EbixCash's gift card division accounted for a whopping 82% of revenue last year. "For Ebix, the IPO is a race against the solvency clock: the company has $643.9 million in debt coming due in February 2023 and only $75.9 million in cash and

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Ebix stock tanks over 35% on new short report from Hindenburg Research