This Madhuri Kela-owned stock has zoomed over 100% in six weeks

IRIS Business Services hit the 5 per cent upper circuit and a new high at Rs 258.40 in trades today, ahead of the board meeting on Thursday to consider fund raising proposal.

Shares of IRIS Business Services hit a new high of Rs 258.40, and were locked at the 5 per cent upper circuit on the BSE on Wednesday at 11:25 am. The stock was up in an otherwise weak market, ahead of board meeting on Thursday to consider fund raising proposal.

A combined 93,000 equity shares changed hands and there were pending buy orders for nearly 44,000 shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.66 per cent at 74,676.

The stock was quoting higher for the eight straight trading day, having surged 45 per cent during the period. In the past one month, the stock price of the company more than doubled or zoomed 103 per cent from a level of Rs 127.

As on March 31, 2024, Madhuri Madhusudan Kela, the wife of ace investor Madhusudan Kela, held 1.07 million equity shares or 5.54 per cent stake in IRIS Business Services, the shareholding pattern data shows.

The company in an exchange filing said, a meeting of the board of directors of IRIS Business Services was scheduled on Thursday, May 30, 2024 inter alia to consider and evaluate proposal for raising of funds by the company through one or more permissible mechanisms as may be deemed appropriate by the company's board.

The fund raising by way of issuance of equity shares and / or other securities including share warrants and / or any other equity based instruments / securities including through preferential issue, private placement, or through any other permissible mode or any combination thereof, as may be considered appropriate, the company said.

IRIS Business Services operates through 3 business segments, COLLECT, the business division that delivers solutions to regulators and accounted for 45 per cent of revenues in FY24. This is an enterprise software business.

CREATE, which delivers regulatory filing solutions to enterprises, including BFSI players. This overwhelmingly SaaS business contributed to 51 per cent of the total revenues in FY24. CONSUME, the datatech business, which accounts for the rest and whose importance comes from its support for the other two segments.

Meanwhile, Global Regtech, IRIS Business Services had clocked revenues of Rs 102.96 crore for the year financial year ended March 31, 2024 (FY24), a growth of 37 per cent from the year preceding.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) jumped 45 per cent year-on-year (YoY) at Rs 15.88 crore in FY24. Net profit more than doubled, hitting a record high of Rs 8.79 crore.

The management said share of India revenues fell to 28 per cent, with 72 per cent of IRIS revenues coming from global markets. Africa emerged as the biggest driver of growth, accounting for 30 per cent of revenues, largely driven by the South African Reserve Bank mandate won by IRIS a couple of years ago. The management expects future growth for IRIS Carbon to come from Europe and North America for which the company is gearing up.

With the introduction of the disclosure management module, IRIS Carbon is now positioned as an offering that is not only meeting compliance requirements emanating from XBRL reporting mandates but as a productivity multiplier in the CFO’s office as well. In addition, the demand outlook in the traditional segment is promising, given the expected mandates emerging from ESG reporting in Europe as well as the ACFR reporting of government agencies in the US, IRIS had said in its FY23 annual report.

In the GST related area, IRIS is deepening its offering to large enterprises through partnerships and exploring building a multi-utility platform for small businesses encompassing compliance, collection and credit facilitation. IRIS iDeal has a dominant market share in India and is looking at expanding to other geographies in addition to Mauritius where it already has a presence. A move towards more granular data and higher automation in BFSI reporting augurs well for this Product line, the company said.