Ebix Files for Chapter 11 Bankruptcy: A Tumultuous End to a Tech Goliath’s Reign?

The curtain has fallen on Ebix, Inc., a once-prominent NASDAQ-listed technology company, as it files for Chapter 11 bankruptcy protection in the Northern District of Texas. This dramatic move marks a stark turn of fortune for the company, which boasted a global presence and ambitious aspirations in the insurance and financial technology sectors.

Ebix inc has filed for bankruptcy (image-Moneycontrol)

From Zenith to Nadir: A Timeline of Ebix’s Rise and Fall

1998: Ebix was founded by Robin Raina, a charismatic Indian-American entrepreneur, to provide technology solutions to the insurance industry.
2005: The company goes public on the NASDAQ, raising significant capital to fuel its expansion plans.
2010s: Ebix embarks on an aggressive acquisition spree, snapping up numerous companies in the US and India.
2018: Financial woes begin to surface, with allegations of accounting irregularities and missed debt payments.
2023: Lenders lose patience, and Ebix defaults on a $600 million credit facility.
December 18, 2023: Ebix files for Chapter 11 bankruptcy, its future hanging in the balance.

Reasons for Ebix’s Demise: A Web of Entanglement

Several factors are attributed to Ebix’s downfall:

Mounting Debt: The company’s rapid acquisitions left it saddled with a heavy debt burden, exacerbated by declining revenues and profitability.
Accounting Concerns: Questions surrounding Ebix’s accounting practices sparked investor doubts and eroded trust.
Management Controversies: Accusations of mismanagement and nepotism further tarnished the company’s image.
Global Economic Slowdown: The global economic slowdown impacted the insurance industry and hampered Ebix’s growth prospects.

What Lies Ahead for Ebix and its Stakeholders?

The Chapter 11 filing paves the way for a restructuring process under court supervision. Possible outcomes include:

Debt Restructuring: Negotiations with creditors to reduce the debt burden and allow for a fresh start.
Asset Sale: Selling off valuable assets to raise funds and repay creditors.
Liquidation: If no viable restructuring plan emerges, the company could be liquidated, with the remaining assets sold to satisfy creditors.

The Impact on Employees, Investors, and the Industry

Ebix’s bankruptcy has far-reaching consequences:

Employee Uncertainty: Thousands of employees face job uncertainty as the company navigates the bankruptcy process.
Investor Losses: Shareholders stand to lose their investments if the company cannot be salvaged.
Industry Repercussions: The bankruptcy casts a shadow on the tech and fintech sectors, raising concerns about financial stability and governance.

Ebix’s story serves as a cautionary tale for businesses. It highlights the importance of responsible financial management, transparent accounting practices, and adapting to changing market conditions. Only time will tell whether Ebix can rise from the ashes or if this marks the final chapter for a once-prominent tech giant.

Shine Bright with Gold: A Guide to Investing in the Sovereign Gold Bond 2023-24 Series III

For gold enthusiasts seeking a secure and hassle-free investment option, the Sovereign Gold Bond (SGB) 2023-24 Series III, opening today, December 18th, 2023, presents a golden opportunity. This government-backed scheme offers a unique blend of gold’s timeless appeal with the stability of guaranteed returns, making it an attractive choice for both seasoned investors and gold novices alike.

But what exactly is the SGB scheme, and how can you invest in it? This comprehensive guide unravels the intricacies of this investment avenue, empowering you to make informed decisions.

Unveiling the Sovereign Gold Bond Scheme:

Launched in November 2015, the SGB scheme aims to channelize domestic gold savings into financial assets, thereby reducing physical gold demand. Issued by the Reserve Bank of India (RBI) on behalf of the Indian government, these bonds offer a convenient and secure way to own gold without incurring storage or purity concerns.

Key Features of the SGB 2023-24 Series III:

Subscription Period: Open from December 18th to 22nd, 2023.
Issue Price: Fixed at Rs. 6,199 per gram of gold, as announced by the RBI on December 15th, 2023.
Denomination: Minimum investment of Rs. 1,000 (one gram of gold) and maximum of Rs. 4,000,000 (per individual per financial year).
Tenure: 8 years, with an exit option after the 5th year at interest accrued.
Interest Rate: 2.5% per annum (payable semi-annually) on the initial issue price.
Tax Benefits: Interest earned is tax-free. Capital gains tax exemption if redeemed after maturity or transferred to demat form.

Investing in the SGB 2023-24 Series III:

Eligibility: Indian residents (individuals, Hindu Undivided Families, and institutions) can subscribe through authorized commercial banks, stock exchanges, and the India Post.
Documents Required: PAN card, valid KYC documents, and bank account details.
Investment Process: You can subscribe online through net banking or offline at designated bank branches. The issue price for online purchases might be discounted by Rs. 50 per gram.

Why Invest in SGBs?

Here are some compelling reasons to consider investing in the SGB 2023-24 Series III:

Safe and Secure: Backed by the government, SGBs offer minimal risk.
Diversification: They can diversify your portfolio and hedge against inflation and market volatility.
Liquidity: You can trade SGBs on stock exchanges after the lock-in period.
Regular Income: Guaranteed interest payments provide periodic returns.
No Storage Worries: Avoid hassles of physical gold storage and theft risks.

Before You Invest:

Understand your risk appetite: SGBs are subject to gold price fluctuations.
Compare with other investment options: Evaluate SGBs against gold ETFs, physical gold, and other investment avenues.
Invest judiciously: Align your SGB investment with your overall financial goals.

Investing in the SGB 2023-24 Series III offers a secure and profitable way to add gold to your portfolio. With its attractive features and ease of investment, this scheme presents a gleam of opportunity for discerning investors. So, shine bright with gold and embrace the benefits of the SGB!

Costco’s Surprising Gold Rush: How It Sold $100 Million Worth of Gold Bars in One Quarter

The wholesale giant saw a huge spike in demand for gold as customers sought a safe haven amid the pandemic

Gold Bars on the company’s Website. (Image-Costco Website)

Costco sold $100 million worth of gold bars in its most recent quarter, CFO Richard Galanti said.

Sales of the one-ounce bars are limited to two per membership and sell out “within a few hours.”

Costco, the world’s largest warehouse club, sold a staggering $100 million worth of gold bars in the last quarter of 2023, according to its latest earnings report. This was a 10-fold increase from the previous quarter when it sold only $10 million worth of gold.

The company attributed the surge in gold sales to the ongoing COVID-19 pandemic, which has caused economic uncertainty and volatility in the stock market. Many customers turned to gold as a form of investment and protection against inflation and currency devaluation.

Costco has been selling gold bars since 2010, when it partnered with a Swiss company called PAMP, one of the world’s leading gold refiners. The gold bars are available in various sizes, ranging from 1 gram to 1 kilogram, and come with a certificate of authenticity and a serial number. They are also sealed in a tamper-proof package with a hologram.

Costco sells the gold bars at a competitive price, based on the spot price of gold, plus a small markup. The gold bars are displayed in a locked case in the jewelry section of select Costco stores, and can also be ordered online or by phone. Customers can either pick up the gold bars at the store or have them delivered to their home.

Why Costco is a trusted source of gold for its customers

Costco is known for its low prices, high quality, and customer satisfaction. These factors make it a trusted source of gold for its customers, who value its reliability and convenience.

Costco also offers a generous return policy for its gold bars, allowing customers to return them within 90 days of purchase, as long as they are in their original condition and packaging. This gives customers peace of mind and flexibility in case they change their mind or need cash.

Costco also benefits from its loyal membership base, which consists of more than 110 million members worldwide. These members pay an annual fee to access Costco’s exclusive deals and services, and tend to shop more frequently and spend more than non-members. Costco’s members are also more affluent and educated than the average consumer, making them more likely to buy gold as an investment.

What Costco’s gold sales mean for the gold market and the economy

Costco’s gold sales reflect the growing demand for gold as a safe haven asset in times of crisis. Gold is considered a hedge against inflation, currency fluctuations, and geopolitical risks. Gold also has a limited supply and a long history of value, making it a desirable commodity.

According to the World Gold Council, the global demand for gold reached 3,759.6 tonnes in 2023, up 4% from 2022. The demand was driven by investors, who bought 1,773.2 tonnes of gold, up 40% from 2022. The demand was also supported by central banks, who bought 273.5 tonnes of gold, up 8% from 2022.

The high demand for gold also pushed up its price, which reached a record high of $2,067.15 per ounce in August 2023, up 28% from the start of the year. The price of gold remained above $1,800 per ounce for most of the year, despite some fluctuations.

Costco’s gold sales also indicate the impact of the COVID-19 pandemic on the economy and consumer behavior. The pandemic has caused a global recession, with many countries experiencing negative growth, rising unemployment, and falling incomes. The pandemic has also disrupted the supply chains, trade, and travel of many industries, creating uncertainty and instability.

The pandemic has also changed the way consumers shop and spend. Many consumers have shifted to online shopping, delivery services, and contactless payments while avoiding physical stores, restaurants, and entertainment venues. Many consumers have also reduced their discretionary spending, and increased their savings and investments, especially in safe and liquid assets like gold.

Costco’s gold sales show that the company has been able to adapt to the changing market conditions and customer preferences and capitalize on the opportunities created by the pandemic. The company has also been able to leverage its reputation, membership model, and value proposition, to attract and retain customers, and increase its sales and profits.

DOMS IPO: GMP jumps on robust subscription status. Should you apply as bidding ends today?

DOMS IPO subscription status: The public issue has been subscribed 15.20 times in the first two days of bidding. (Photo: Courtesy company website)

The GMP of DOMS’ IPO has witnessed a significant surge on the back of strong subscription status. With the bidding phase coming to an end today, market analysts are now weighing in on whether or not investors should apply. The initial response to DOMS’ IPO has been promising, with subscriptions already oversubscribed by more than 3 times. However, experts advise caution, pointing out that investing in IPOs always involves some degree of risk. Anyone considering participating in DOMS’ IPO is advised to consult with a financial expert to help assess the risks and potential returns.

DOMS IPO GMP Status

As mentioned above, shares of the stationery brand are available at a premium of ₹502 in the grey market today. This means DOMS IPO GMP today is ₹502, which is ₹51 higher than its GMP of ₹451 on Wednesday. Market observers said that strong responses by investors and bullish sentiments on Dalal Street could be the possible reason for the sharp rise in DOMS IPO GMP.

DOMS IPO Review

According to Dhruv Mudaraddi, a research analyst at StoxBox, DOMS Industries Ltd.’s IPO presents an attractive opportunity for investors to benefit from the growing stationery and art products industry in India. DOMS boasts a significant market share, particularly in pencils and mathematical instrument boxes, and has optimized its market timing for efficient product delivery. As a result, DOMS has seen strong financial performance and has established a strong presence internationally. However, the IPO is priced at a high P/E multiple of 30x annualized FY24 earnings. Despite this, investors are advised to subscribe to the issue for the benefit of listing gains.

Date:December 15,2023

Oil prices surge as IEA raises demand outlook and dollar weakens

The global oil intake will upward thrust through 1.1 million barrels in step with day in 2024, the IEA stated in a month-to-month report, up 130,000 bpd from its preceding forecast.

World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024. (Reuters)

Oil prices rose sharply on Thursday, December 14, as the International Energy Agency (IEA) increased its oil demand forecast for next year and the US dollar fell to a four-month low. The IEA said that global oil consumption will grow by 1.1 million barrels per day (bpd) in 2024, up from its previous estimate of 0.97 million bpd, due to a better outlook for the US economy and lower oil prices.

Brent crude futures, the global benchmark, gained $2.49, or 3.4 percent, to settle at $76.75 a barrel. US West Texas Intermediate (WTI) crude futures, the US benchmark, rose $2.41, or 3.5 percent, to end at $71.88 a barrel, according to news agency Reuters. In India, on the Multi Commodity Exchange (MCX), crude oil futures for December 18 delivery, traded 3.87 percent higher at ₹6,005 per bbl, after touching a high of ₹6,020 and a low of ₹5,797 per bbl, compared to the previous close of ₹5,781 per barrel.

Also Read: India paid $84.2/bbl for Russian oil in October, highest since December 2022: Report

What lifted oil prices? -The IEA’s 2024 oil demand projection is much lower than the forecast of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which expects the demand to grow by 2.4 million bpd next year. This suggests that the oil market will remain tight and support the prices.

-The US dollar, which measures the greenback against a basket of six major currencies, dropped to its lowest level since August 6, after the US Federal Reserve indicated that it will keep the interest rates unchanged until 2024, despite the rising inflation pressures.

-A weaker dollar makes oil cheaper for buyers using other currencies and also boosts the demand for commodities as a hedge against inflation. Lower interest rates also stimulate the economic activity and the oil consumption.

-The European Central Bank (ECB), on the other hand, resisted the market expectations of an early rate hike and said that it will keep the interest rates at record lows until the inflation outlook stabilizes.

-The US Energy Information Administration (EIA) reported that the US crude inventories fell by 4.3 million barrels in the week to December 8, more than the market forecast of a 3.8 million barrel drop, as the imports declined. This showed that the US oil demand remained strong despite the Omicron variant concerns.

What’s next for oil prices? Oil prices recovered from their earlier losses on Thursday, after a surprise drawdown in the US oil stocks and an attack on an oil tanker in the Red Sea.

The tanker, which was carrying crude oil from Saudi Arabia to Israel, was attacked by gunmen in a speedboat and missiles near Yemen’s coast, in the latest incident that threatened the security of the vital shipping route. The attack was claimed by the Yemeni Houthi rebels, who warned against traveling to Israel.

The US Federal Reserve’s decision to keep the interest rates on hold also supported the oil prices, as the dollar index plunged after the Fed meeting, making oil more attractive for foreign investors.

However, oil prices may face some volatility in the coming days, as the market weighs the impact of the Omicron variant on the global oil demand and the supply response from OPEC+ and other producers.

“We expect oil prices to remain volatile, and we see the support levels for crude oil at $69.05–68.40 and the resistance levels at $70.80-71.40. For the Indian Rupee (INR), we see the support levels for crude oil at ₹5,710-5,640 and the resistance levels at ₹5,860-5,940,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Indian stocks set to rise after global cues and earnings boost

India stock market: The market continued its exuberance and hit a fresh high amid the dovish commentary from the US Federal Reserve. (Photo: Reuters)

Indian stock markets are likely to open higher on Friday, following positive global cues and strong corporate earnings. The Nifty futures on the Singapore Exchange (SGX) traded 0.4% higher at 21,250, indicating a gap-up start for the domestic benchmark indices.

The sentiment was boosted by the record closing of the US stocks on Thursday, as the investors cheered the robust retail sales data and the European Central Bank’s (ECB) decision to keep the interest rates unchanged. The Dow Jones Industrial Average rose 0.9% to 36,157, the S&P 500 gained 0.8% to 4,537, and the Nasdaq Composite added 0.5% to 15,021. The US retail sales rose 0.7% in September, beating the expectations of a 0.2% decline, and suggesting that consumer spending remained resilient despite the supply chain disruptions and inflation pressures. The ECB, meanwhile, maintained its ultra-loose monetary policy stance, and said that it would start reducing its pandemic emergency bond purchases in the next quarter, but did not provide any clear timeline or amount.

The Asian markets also traded higher on Friday, tracking the Wall Street gains and the easing of the energy crisis in China. Japan’s Nikkei 225 rose 1.6% to 29,665, China’s Shanghai Composite advanced 0.6% to 3,583, and Hong Kong’s Hang Seng Index climbed 0.8% to 25,892. The oil prices eased after China released some of its strategic reserves to ease the supply crunch and lower the fuel costs. The Brent crude futures fell 0.6% to $84.5 per barrel, while the WTI crude futures dropped 0.7% to $81.9 per barrel.

On the domestic front, investors will focus on the second-quarter earnings season, which has been largely positive so far. On Thursday, Reliance Industries, HDFC Bank, HCL Technologies, and Bajaj Finance reported better-than-expected results, boosting their share prices. Reliance Industries posted a 43% jump in its consolidated net profit to ₹13,680 crore, driven by its digital services and retail segments. HDFC Bank reported an 18% rise in its net profit to ₹8,834 crore, as its asset quality improved and its provisions declined. HCL Technologies posted a 9.5% increase in its net profit to ₹3,265 crore, as its revenue grew across all its business segments and geographies. Bajaj Finance reported a 36% surge in its net profit to ₹1,471 crore, as its assets under management and new loans grew.

Some of the key companies that will announce their quarterly results on Friday are Infosys, ICICI Bank, Wipro, and Tata Consultancy Services. The market will also keep an eye on the macroeconomic data, such as the wholesale price index (WPI) inflation and the foreign exchange reserves, which will be released later in the day. The WPI inflation is expected to remain high in September, due to the rising commodity prices and supply chain issues. The foreign exchange reserves, which hit a record high of $642.5 billion in the week ended October 1, are expected to increase further, as the central bank intervenes to curb the rupee appreciation.

The market will also monitor geopolitical developments, such as the Israel-Hamas conflict, the US-China tensions, and the COVID-19 situation, which may have an impact on the risk appetite and the fund flows.

Top Upcoming IPOs in December 2023 in India

The Indian stock market is witnessing a flurry of IPO activity as several companies are looking to raise funds from the public. In December 2023, there are at least eight IPOs that are expected to hit the market, offering investors a variety of opportunities across different sectors and segments. In this blog, we will take a look at the details of these upcoming IPOs and their prospects.

Shanti Spintex Limited IPO

Shanti Spintex Limited is a textile company that is engaged in procuring, processing, and distributing various agricultural products such as cotton, yarn, and fabric. The company also manufactures and exports home textiles and garments to various countries. The company plans to raise Rs 23.80 crore through its SME IPO, which is scheduled to open on December 4, 2023, and close on December 6, 2023. The price band for the issue has been fixed at Rs 70 per share, and the lot size is 2,000 shares. The company intends to use the net proceeds from the IPO for working capital requirements, general corporate purposes, and issue expenses ¹.

Muthoot Microfin Limited IPO

Muthoot Microfin Limited is a microfinance institution that provides micro-loans to women customers, primarily for income generation purposes, with a focus on rural regions of India. The company is the fourth largest NBFC-MFI in India in terms of gross loan portfolio as of December 31, 2022, according to CRISIL. The company has set the price band of its IPO at Rs 277 to Rs 291 per equity share, and the issue size is Rs 960 crore. The IPO comprises a fresh issue of shares worth Rs 760 crore and an offer for sale of shares worth Rs 200 crore by existing shareholders. The IPO will open for subscription on December 18, 2023, and close on December 20, 2023. The lot size is 50 shares, and the minimum investment amount is Rs 13,950 ².

Motisons Jewellers Limited IPO

Motisons Jewellers Limited is a jewellery retail chain that offers a wide range of products such as gold, diamond, silver, and platinum jewellery, as well as bullion and coins. The company operates four showrooms in Jaipur, Rajasthan, and has a strong online presence through its e-commerce platform. The company aims to raise Rs 400 crore through its IPO, which will open for subscription on December 18, 2023, and close on December 20, 2023. The price band for the issue has been fixed at Rs 52 to Rs 55 per share, and the lot size is 2,000 shares. The company plans to use the net proceeds from the IPO for expansion of its business operations, working capital requirements, and general corporate purposes ³.

Suraj Estate Developers Limited IPO

Suraj Estate Developers Limited is a real estate construction company that develops residential and commercial projects in the South Central Mumbai region. The company has completed 42 projects with a developed area of over 10.46 lakh square feet, and has 13 ongoing projects and 16 upcoming projects in its pipeline. The company has fixed the price band of its IPO at Rs 340 to Rs 360 per share, and the issue size is Rs 400 crore. The IPO consists of a fresh issue of shares worth Rs 400 crore. The IPO will open for subscription on December 18, 2023, and close on December 20, 2023. The lot size is 40 shares, and the minimum investment amount is Rs 14,400 ⁴.

Benchmark Computer Solutions Limited IPO

Benchmark Computer Solutions Limited is an IT infrastructure solutions and technology consultancy and software development company. The company provides end-to-end technology and technology-related services such as IT infrastructure solutions, software and web-based application development services, annual maintenance contracts, and facility management services. The company plans to raise Rs 12.24 crore through its SME IPO, which will open for subscription on December 14, 2023, and close on December 18, 2023. The price band for the issue has been fixed at Rs 66 per share, and the lot size is 2,000 shares. The company intends to use the net proceeds from the IPO for augmenting its capital base, purchasing passenger vehicles, and general corporate purposes ⁵.

Siyaram Recycling Industries Limited IPO

Siyaram Recycling Industries Limited is a company that is engaged in providing employee transportation services to large MNCs with a presence across major cities in India. The company has over 16 years of experience in catering to the employee transportation needs of companies in IT/ITES, aviation, and other sectors. The company operates a largely asset-light engagement model, and has a fleet of over 1,475 vehicles, of which 217 are owned by the company and the rest are leased from various vendors. The company plans to raise Rs 22.96 crore through its SME IPO, which will open for subscription on December 14, 2023, and close on December 18, 2023. The price band for the issue has been fixed at Rs 43 to Rs 46 per share, and the lot size is 3,000 shares. The company proposes to utilise the net proceeds from the IPO for funding additional working capital requirements, purchasing passenger vehicles, and general corporate purposes ⁶.

Shree OSFM E-Mobility Limited IPO

Shree OSFM E-Mobility Limited is a company that is engaged in providing electric vehicle charging solutions and services to various customers such as fleet operators, corporates, and individuals. The company has installed over 100 EV charging stations across Mumbai, Navi Mumbai, Pune, Bengaluru, and Kolkata, and has partnered with leading EV manufacturers such as Tata Motors, Mahindra Electric, and Ola Electric. The company aims to raise Rs 24.60 crore through its SME IPO, which will open for subscription on December 14, 2023, and close on December 18, 2023. The price band for the issue has been fixed at Rs 65 per share, and the lot size is 2,000 shares. The company intends to use the net proceeds from the IPO for expanding its business operations, purchasing passenger vehicles, and general corporate purposes ⁷.

Inox India Limited IPO

Inox India Limited is a cryogenic engineering company that manufactures and supplies cryogenic storage tanks, vaporizers, and transport tanks for various industries such as industrial gases, petrochemicals, LNG, and aerospace. The company is a part of the Inox Group, and has a global presence in over 100 countries. The company has filed the draft papers with SEBI to raise funds through a public issue, which is expected to open on December 14, 2023, and close on December 18, 2023. The IPO will be a pure offer for sale of up to 22.11 million shares by its existing shareholders and promoters. The price band and the lot size for the issue are yet to be announced ⁸.

These are some of the top upcoming IPOs in December 2023 in India that investors can look forward to. However, before investing in any IPO, it is advisable to do thorough research on the company’s financials, business model, growth prospects, and valuation, and consult a financial advisor if needed. Investing in IPOs can be rewarding, but also involves risks and uncertainties. Therefore, investors should be careful while making their investment decisions.

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