Eraaya Lifespaces Ltd EGM Update: Preferential Issue Now a Share Swap and New Intra-Group Fee Proposal

On Friday, shares of Eraaya Lifespaces Limited hit a 5 per cent Upper Circuit to Rs 39.13 per share from its previous closing of Rs 37.27 per share. The stock’s 52-week high is Rs 205.95 per share and its 52-week low is Rs 19.75 per share.

Eraaya Lifespaces Limited (formerly Justride Enterprises Limited) has issued a Corrigendum/Addendum to the Notice for its Extra-ordinary General Meeting (EGM) scheduled for December 9, 2025. This necessary update follows observations from BSE Limited regarding the proposed preferential issue. The amendments provide clarifications and modifications to the special resolution related to the preferential issue (Item No. 1) and its explanatory statement, ensuring compliance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations) and other applicable laws.

The most significant change to the preferential issue involves its revised nature: it is now defined as an "Issuance of Equity Shares on a Preferential Basis for a Consideration Other Than Cash (Swap of Shares)." Eraaya will allot 28,60,412 equity shares at an issue price of Rs 40.64 per share to Non-Promoter entities Melanie Lane Partners and Watch Hill Capital. This allotment is for a non-cash consideration, specifically a share-swap arrangement to acquire their entire 2.42% equity interest in Ebix Inc. and settle certain financial/contractual obligations, aiming for 100% ownership of the subsidiary.

Crucially, the Corrigendum incorporates a new Special Business that was inadvertently skipped in the original notice: "Approval for recoupment of intragroup service charges from its subsidiaries and step-down subsidiaries." This Ordinary Resolution seeks shareholder approval for the Company (the Ultimate Parent) to charge its subsidiaries, including those under Ebix Inc., for management, administrative, and corporate support services. The total charges in any financial year will not exceed 5 per cent of the respective subsidiary's annual turnover, calculated based on operating expenses and an appropriate service fee in accordance with arm's-length principles and Transfer Pricing regulations.

About Eraaya Lifespaces Ltd

Eraaya Lifespaces, a lifestyle and hospitality company focused on luxury, innovation and technology, is expanding its global footprint and offerings through the strategic acquisition of Ebix Inc. USA and its worldwide subsidiaries. This move significantly broadens Eraaya's scope beyond its core business of creating immersive cultural experiences, as Ebix is a global leader in software and e-commerce solutions across insurance, financial services, travel, healthcare and e-learning. By integrating Ebix's expertise in areas like advanced insurance exchanges and SaaS solutions, Eraaya aims to drive transformative innovation and redefine the future of business in interconnected global markets.

In its Quarterly Results (Q1FY26), the company reported net sales of Rs 609 crore and a net loss of Rs 24 crore. Looking at its annual results (FY25), the company reported net sales of Rs 22.32 crore and a net profit of Rs 25.87 crore.

The company has a market capitalisation of over Rs 700 crore and a 130 per cent 5-year stock price CAGR. The stock gave multibagger returns of over 4,671 per cent in 3 years and a whopping 5,000 per cent in 5 years. As of September 2025, the company's promoters own 35.61 per cent stake, FIIs own 22.49 per cent, DIIs own 1.30 per cent, the Government of India owns 0.75 per cent and the rest 39.84 per cent stake is owned by the public.

Disclaimer: The article is for informational purposes only and not investment advice.