Ebix shares hit two-year low as Hindenburg Research goes short

Ebix

16/06/2022 15:13

(Updates)
    **  Shares of software firm Ebix  EBIX.O  slump 32.7% to an
over two-year low of $15.75 after Hindenburg Research takes a
short position https://hindenburgresearch.com/ebix
    ** The short seller calls the company's plans for the public
listing of its Indian unit - EBixCash - a "race against the
solvency clock" and expects the plan to fail
    ** When the company reported Q1 results in May, CEO Robin
Raina said the EbixCash IPO process was still on and the company
was in talks with Indian regulators  urn:newsml:reuters.com:*:nGNX9k603r
    ** Noting that the co's gift card division's debut plans
have been delayed over the last three years, Hindenburg Research
 says its app "isn't even ready for the market, let alone a
prime-time IPO" 
    ** Ebix was not immediately available for comment on
Thursday
    ** Revenue from EBIXCash exchanges, which accounted for
about 78% of co's total Q1 revenue, fell last qtr by 2.7%
    ** Co reported cash equivalents of $102.2 mln and total debt
of $647.6 mln as of March 31, 2022
    ** Up to last close, stock fell 23% this year

 (Reporting by Nandhini Srinivasan in Bengaluru)
 ((nandhini.srinivasan@thomsonreuters.com))