IRIS Business Services Limited has informed the Exchange regarding 'The Transcript of Company update call'.
IRIS · price
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IRIS is divesting its TaxTech GST ASP business to US-based Sovos LLC for approximately INR 151 crores, structured as a transfer of the business into subsidiary IRIS Logix, with Sovos acquiring 100% of its shares. The TaxTech business clocked about INR 16.35 crores in revenue in FY25 with roughly INR 3 crores in segment-level EBITDA losses. The bulk of cash is expected by August 2025, with a long-stop date of October 1, 2025, and the long-term capital gains tax is expected to be around 14% of the transaction value. About 100 employees will move to the new entity, and shareholder approval will be sought at the AGM on July 26, 2025. Management set a medium-term aspirational target of INR 500 crores in revenue in 4-5 years (currently around INR 128-130 crores), with plans to double down on SupTech and RegTech, especially IRIS CARBON enterprise SaaS.
The deal brings in INR 151 crores in non-dilutive cash, strengthening the balance sheet for aggressive sales and marketing investment in the RegTech/SupTech business. Shareholders need to approve the transaction at the July 26 AGM as it is a material related party transaction; the loss-making segment's exit may modestly help margins, but management flagged that increased OPEX spending on sales-led growth could put temporary pressure on EBITDA.