IRIS Business Services Limited has informed the Exchange about General Updates - Transfer of Company s GST ASP Services Business Undertaking to IRIS Logix Solutions Private Limited.
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IRIS Business Services has approved selling its GST Application Service Provider (ASP) Services Business to UK-based Sovos Compliance Limited for a total consideration of Rs 151.24 crore. The deal is structured in steps: first, IRIS will buy the remaining 48.99% stake in its subsidiary IRIS Logix from the minority JV partner for Rs 0.50 crore, making it a wholly owned subsidiary. Then, the GST ASP business will be transferred to IRIS Logix on a slump sale basis for Rs 140.57 crore, after which Sovos will acquire 100% of IRIS Logix for Rs 10.67 crore. The GST ASP business contributed 12.67% of standalone turnover (Rs 15.15 crore) and 7.16% of net worth in FY25. The company stated the move will help focus on its higher-growth Suptech and Regtech businesses, where it sees better long-term potential.
The divestment brings in significant cash (Rs 151+ crore) from a non-core business line, which could strengthen the balance sheet and fund growth in the company's main Regtech and Suptech segments. Shareholders may view this positively as management is exiting a lower-growth area at an attractive valuation, though it reduces the company's revenue base by about 12-13% on a standalone basis.