Iris Business Services Limited has informed the Exchange regarding Board meeting held on July 02, 2025.
IRIS · price
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The board approved a multi-step transaction to sell its GST Application Service Provider (ASP) business and its subsidiary IRIS Logix Solutions to UK-based Sovos Compliance Limited for a total consideration of Rs 151.24 crore. This includes Rs 140.57 crore for the GST ASP business (slump sale) and Rs 10.67 crore for 100% equity in IRIS Logix. Before the sale, the company will first buy the remaining 48.99% stake in IRIS Logix from its JV partner Logistics Fund India LLP for Rs 0.50 crore (plus a contingent Rs 4.40 crore), making IRIS Logix a wholly owned subsidiary. The GST ASP business contributed about 12.67% of standalone turnover (Rs 15.15 crore out of Rs 119.55 crore) in FY25. Sovos, a global tax compliance leader serving Fortune 500 companies, is not a related party. Completion is expected by October 1, 2025.
This is a significant divestiture where the company is exiting its GST ASP business to focus on higher-growth Suptech and Regtech verticals. Shareholders stand to receive an attractive cash inflow of Rs 151.24 crore, strengthening the balance sheet and funding the core growth strategy, though it does mean giving up about 12-13% of revenue.