IRIS Business Services Limited (IRIS) has successfully concluded the sale of its 95% equity stake in IRIS Logix Solutions Private Limited to Sovos Compliance Limited, UK. This transaction marks a significant milestone in IRIS's strategic divestment of its GST ASP Services Business.

Transaction Details

The multi-step transaction, which was approved by IRIS's Board of Directors on July 02, involved several key components:

1. Acquisition of a 48.99% stake in IRIS Logix from the minority joint venture partner, Logistics Fund India LLP.
2. Transfer of a 5% equity stake in IRIS Logix to Sovos Compliance Limited.
3. Investment by Sovos in IRIS Logix through subscription to compulsorily convertible debentures.
4. Transfer of IRIS's GST ASP Services Business to IRIS Logix on a slump sale basis, as a going concern.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, IRIS Business Services Limited has formally notified the stock exchanges about the completion of this transaction. The company confirmed that the sale was executed in accordance with the definitive agreements approved by its Board of Directors.

Strategic Implications

This divestment represents a strategic move for IRIS Business Services, potentially allowing the company to streamline its operations and focus on core business areas. For Sovos Compliance Limited, the acquisition of a majority stake in IRIS Logix could strengthen its position in the GST ASP services sector in India.

Market Impact

As this transaction involves a significant business unit of IRIS Business Services, it may have implications for the company's future financial performance and market positioning. Investors and market analysts will likely be keen to observe how this strategic shift affects IRIS's business model and growth trajectory in the coming quarters.

The completion of this sale marks the end of a process that began with the board's approval on July 02, demonstrating IRIS Business Services' commitment to executing its strategic decisions efficiently.

IRIS Business Services Limited (IRIS) has successfully completed the transfer of its GST Application Service Provider (ASP) Services Business to its subsidiary, IRIS Logix Solutions Private Limited (IRIS Logix). The transaction, valued at ₹1,405.70 million (₹140.57 crore), was executed as a slump sale on a going concern basis, effective August 1, 2025.

Transaction Details

The business transfer is part of a larger composite deal involving Sovos Compliance Limited, UK. Key aspects of the transaction include:

• Transfer executed under a Business Transfer Agreement dated July 2, 2025
• Shareholder approval obtained on July 26, 2025
• IRIS acquired a 48.99% stake in IRIS Logix from minority partner Logistics Fund India LLP
• 5% equity stake in IRIS Logix transferred to Sovos
• Sovos made an investment in IRIS Logix through compulsorily convertible debentures

Management Changes

As a result of this business transfer, IRIS Business Services announced changes in its senior management:

• Mr. Gautam Mahanti, previously designated as Senior Management Personnel and Head – GST at IRIS, has ceased to be associated with the company effective August 1, 2025
• Mr. Mahanti has been transferred to IRIS Logix, aligning with the completion of the GST ASP Services Business divestment

Regulatory Compliance

IRIS Business Services has adhered to regulatory requirements by making necessary disclosures:

• Intimation provided under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
• Detailed disclosures made in accordance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024

The completion of this transaction marks a significant step for IRIS Business Services in restructuring its business operations and aligning with its strategic partnership with Sovos Compliance Limited. The move is expected to streamline the company's focus and potentially enhance its market position in the evolving GST services landscape.