BSE-listed Eraaya Lifespaces on September 30 informed the exchanges that its board suspended Robin Raina as the chairman of Ebix. Eraaya Lifespaces recently acquired Ebix Inc., a well-known company in the On-Demand software and e-commerce sectors for insurance, financial services, healthcare, and e-learning. nhe action was taken on account of reports of financial irregularities, the company said in a statement.
The company informed the investigation will have no impact on the company's functionality. Meanwhile, Karan Bagga has been appointed as the chief executive officer (CEO) of the financial technology company.
The company, in an exchange filing, said, "The Eraaya Board has unanimously resolved to initiate a comprehensive investigation under the supervision of a High-Powered Steering Commitee, while suspending Mr. Raina from all key functional positions pending the investigation's outcome."
In 2023, Georgia-based Ebix filed for bankruptcy in the United States following a default on a USD 617 million loan. Subsequently, Eraaya Lifespaces, which had shown interest in acquiring the Nasdaq-listed company, emerged as the successful plan sponsor. The firm took ownership after paying over Rs 1,250 crore for the acquisition. Following the acquisition, Ebix exited Chapter 11 and successfully cleared all its debt.
Last month, Eraaya said it completed its QIP to raise Rs 249 crore and that the funds will be utilised towards acquisition of Ebix Inc.
It's shares have delivered multibagger returns to the shareholders. In the last one year, the stock has surged to nearly 8,000 percent, according to BSE data with its market valuation zooming to 5,087.69 crore on the BSE. The stock has been hitting 5 percent upper circuit back-to-back since August 28 trading session. Its YTD gains stand at 2,200 percent.
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