Ebix slumps as Hindenburg goes short and doubts India unit IPO plan

Ebix

16/06/2022 14:38

**  Shares of software firm Ebix  EBIX.O  slump 37.2% to
$14.69 premarket after Hindenburg Research takes a short
position https://hindenburgresearch.com/ebix
    ** The investment research firm calls the company's plans
for the public listing of its Indian unit EBixCash a 'race
against the solvency clock' , and expects it 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" 
    ** 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 million,and total
debt of $647.6 million as of March 31, 2022 
    ** Up to last close, stock fell 23% this year

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