Eraaya Lifespaces, which recently acquired software and e-commerce services firm Ebix Inc. USA and its global subsidiaries, has defied gravity with its share price rallying over 6,000% in just one year. The multibagger stock touched its fresh all-time high of ₹1,151.55 today, surging 6,365% from its 52-week low of ₹18.70 on September 9, 2023. The stock price of the hospitality and real estate company has zoomed over 15,000% since its inception in June 2020. The smallcap stock has been hitting upper circuit for 7 sessions, rising over 40% during this period.
However, there is no correlation between fundamentals and stock price as the company’s revenue dropped 87.19% sequentially to ₹2 crore in Q1 FY25, from ₹15.45 crore in March quarter of FY24. The net profit stood at ₹0.95 crore in the June quarter of the current fiscal, while it stood at ₹0.34 crore for financial year 2023.
On the technical front, the stock is trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. As of September 5, 2024, Eraaya Lifespaces had a profit-to-earnings (P/E) ratio of 1,619.52 and earnings per share of 0.68.
On Thursday, Eraaya Lifespaces shares were locked in its 5% upper circuit limit at ₹1,151.55, with a market capitalisation of ₹2,117 crore. The smallcap stock, which is under stage 4 of the Long-term Additional Surveillance Measure (ASM LT) of the BSE, has been hitting 5% upper circuit for sevene consecutive sessions after it announced successful acquisition of 100% stake in Ebix Inc following completion of the payment of $151.577 million (₹1,273.25 crore). The acquisition process began in June this year after a consortium of members led by Eraaya Lifespaces emerged as the top bidder in an auction managed by the U.S. Bankruptcy Court.
The acquisition encompasses full ownership of Ebix Inc. and its global subsidiaries, integrating all associated assets and liabilities at an enterprise value of $361 million ( or ₹3,009 crore). As per the company, the deal will make way for Eraaya to explore new exciting opportunities in the on‐demand software and e‐commerce services to the insurance, financial and healthcare industries, entertainment travel and event organising industry.
On September 4, Eraaya Lifespaces, formerly known as Justride Enterprises, informed exchanges that it planned to raise funds up to ₹1,028.7 crore by way of preferential issue. The company proposes to issue 1.27 crore compulsorily convertible warrants convertible into equivalent number of fully paid-up equity shares of the company having face value of ₹10 each.
“To augment the long-term financial resources of the company, and considering the latest developments happened, the board approved further raising of funds by way of creating, issuing and alloting up to 1,27,00,000 compulsorily convertible warrants convertible into equivalent number of fully paid-up equity shares of the company having face value of Rs. 10/- (Rupees Ten Only), to the persons belonging to “Promoters” and “Non-Promoter, Public Category,” it said in a BSE filing on September 4.
Eraaya Lifespaces is a hospitality company that deals with food, beverages, lodging, recreation, meetings, events, and other travel and tourism-related activities.
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