Eraaya Lifespaces Soars 5% for Second Day After Positive Legal Update and Major Contract Win

Shares of Eraaya Lifespaces reached the 5% upper circuit limit for the second day in a row on Wednesday, October 9, trading at ₹2,888 after the company shared news about legal developments involving its subsidiary, Ebix Singapore, and Ernst & Young (E&Y).

The company announced that Mr. Robin Raina tasked E&Y with selling assets from Ebix Singapore, including those of Ebix Cash India, to prevent financial issues amid the Chapter 11 proceedings of Ebix Inc USA. However, E&Y, not fully understanding the situation, looked for buyers but couldn’t complete any deals. This led to E&Y taking legal action against Ebix Singapore in the Delhi High Court.

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After discussions with E&Y, Eraaya and Ebix clarified the insolvency situation, resulting in E&Y withdrawing their legal claim, and there is currently no ongoing litigation or financial issues involving Eraaya, Ebix, or their subsidiaries.

In another positive development, Ebix Cash secured a contract worth approximately ₹138.75 crore for Network Integrating Services from Punjab National Bank (PNB) for three years. Ebix has been managing PNB’s network across India since 2021, which includes 10,800 branches, 5,000 ATMs, and 4,000 branches of PNB-sponsored Regional Rural Banks. The contract also involves overseeing a Data Centre in Delhi, a Network Operations Centre, and a Disaster Recovery Centre in Mumbai.

Impressive Stock Performance

Eraaya Lifespaces has consistently hit the 5% upper circuit limit recently, delivering impressive returns to investors. The stock has skyrocketed by 7,700% over the past year and an astonishing 36,839% over the last two years. In the past five years, it has grown by 38,008%.

As of August 2024, the public holds the largest stake in the company at 46.1%, with promoters owning 36.2% and foreign institutional investors (FIIs) holding 17.7%, according to Trendlyne shareholding data.