The Shares of a global RegTech firm hit the 5% upper circuit on July 3 after it announced a Rs 151.24 crore deal to sell its GST ASP business and full stake in a subsidiary to UK-based Sovos Compliance.
With a market capitalization of Rs 720 crore on Thursday, shares of IRIS Business Services Ltd hit 5% upper circuit to Rs 350.80 per share, up from the previous close of Rs 334.10 per share.
IRIS Business Services Ltd, in an exchange filing, announced it will sell its GST Application Service Provider (ASP) business along with its 100% stake in subsidiary IRIS Logix Solutions to UK-based Sovos Compliance for Rs 151.24 crore. The deal includes the transfer of related products, clients, and employees.
The move is part of IRIS’s strategy to streamline operations and focus on its core global RegTech offerings. The company said the proceeds will be used to fuel growth in other business areas and will not dilute shareholder equity. The transaction is expected to close in August 2025, subject to shareholder approval.
K Balachandran,co-founder and CEO, IRIS said “The proposed divestiture of this business line is part of an overall strategic initiative towards simplifying our businesses and sharpening focus in order to capture a higher share of the multi-billion dollar global Regtech market, where we are well poised for strong growth in the international markets.
Also Read: 3 Stocks in which promoters have sold their stake in the companies
We see this divestiture as providing us the necessary capital to fund the growth of this business, as well as to provide the required support to our other business lines, in a non-dilutive manner,”.
IRIS Business Services Ltd is a Mumbai-based global RegTech company that provides specialized software for financial, ESG, and regulatory reporting to enterprises, banks, financial institutions, and over 30 regulators worldwide including central banks, business registries, and stock exchanges. Its flagship IRIS Suptech platform helps simplify and automate supervisory operations.
With subsidiaries in the USA, Singapore, Malaysia, and Italy, IRIS operates globally and is backed by 500+ domain and technology experts. The company focuses on enabling clean, structured, and actionable data using open standards, helping clients make informed decisions and ensure regulatory compliance.
The company reported a revenue of Rs 126 crore in FY25, up by 23.53 percent from its FY24 revenue of Rs 102 crore. Coming to its profitability, the company reported a net profit rise of 44.44 percent to Rs 13 crore in FY25 from Rs 9 crore in FY24. The stock delivered an ROE and ROCE of 22.3 percent and 30.2 percent, respectively.
Written By Rohan Pandey
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Microcap stock hits 5% upper circuit after selling its GST ASP business to UK based company appeared first on Trade Brains.