Ebix Inc. (NASDAQ: EBIX), a software solution company, refuted the short seller’s charges of improper financial reporting. Strong sales statistics and revenue growth estimates, according to Ebix, are in conformity with approved reporting guidelines.
Last week, investment research company Hindenburg Research, which specializes in short selling, predicted that Ebix will face debt-related financial difficulties as a result of the planned IPO of the EbixCash business in India.
Ebix has already had difficulties in the Indian market. The accounting company, in particular, declined to work with Ebix owing to poor documents.
Ebix refutes Hindenburg Research’s findings, claiming that all of its reporting adheres to GAAP standards and the US Securities and Exchange Commission’s rules (SEC). This also applies to EbixCash’s Indian affiliate.
According to the company, it hired independent auditors to assess the Indian business in March 2021, as well as attorneys from numerous companies to resolve any difficulties. In general, the auditors approved the financial statements for 2021’s conformity with the criteria, as well as the financial statements of the Indian business for three years.
The criticized gift card business in India accounted for only around 1% of Ebix’s operational income and had no substantial influence on the company’s overall financial performance.
Ebix delivers software to insurance, financial, and medical firms, among others. Risk compliance, administration and outsourcing services, CRM assistance, and other services are available through Ebix.
The short seller’s disclosure caused a significant reaction in EBIX pricing, however, Ebix’s following release caused a partial recovery of losses.
The stock price of Ebix Inc. (EBIX) is currently 58.64 percent lower than its three-month high. The stock is currently trading +25.28 percent above its three-month low, according to the view from the opposite side. EBIX is currently trading -58.64 percent below its 52-week high and 25.28 percent above its 52-week low price, according to a larger time frame analysis.