IRIS Business Services Limited has informed the Exchange about General Updates - Acquisition of balance 48.99% stake in IRIS Logix Solutions Private Limited.
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IRIS Business Services' board has approved a multi-step deal with Sovos Compliance Limited (UK) worth Rs. 151.24 crore in total. First, IRIS will buy the remaining 48.99% stake in subsidiary IRIS Logix from minority JV partner Logistics Fund India LLP for Rs. 0.50 crore (plus a Rs. 4.40 crore deferred payment tied to a future liquidity event), making IRIS Logix a wholly owned subsidiary. The company will then transfer its GST ASP Services Business (12.67% of FY25 standalone turnover at Rs. 15.15 crore) to IRIS Logix on a slump sale basis for Rs. 140.57 crore, funded by Sovos. Finally, IRIS will sell 100% of IRIS Logix (with its consolidated GST ASP business) to Sovos in two tranches for Rs. 10.67 crore. The deal is expected to close by October 1, 2025. The company is exiting the GST ASP services line to focus on its higher-growth Suptech and Regtech businesses, which it describes as multi-billion dollar global markets.
The transaction unlocks significant cash (Rs. 151+ crore) for shareholders, validates the GST ASP business at an attractive valuation, and lets the company refocus capital on its higher-growth Suptech and Regtech segments. Shareholders should note this is a material related-party transaction requiring shareholder approval, but it is executed at arm's length and should be positive for the stock given the strategic clarity and cash inflow.