IRIS Business Services Ltd

iris business services

About the Company:

Company, IRIS Business Services Limited is a global provider of software products for compliance, data and analytics.

Iris Business Services was founded by Mr. Swaminathan Subramaniam, Mr. Balachandran Krishnan and Ms. Deepta Rangarajan in the year 2000.

Company is headquartered in Mumbai, India with subsidiaries in United States, Singapore and Italy.

Initially they were focussing on providing XBRL (eXtensible Business Reporting Language – an XML based information standard) related services and consultancy to their domestic and overseas clients.

Company cater to Regulators including Central Banks, Business Registries, Capital Market Regulators and Stock Exchanges. They also provide solutions to the regulated, including Corporates, Banks, Mutual Funds.

Company changed their business model from a services provision model to a product based model in the year 2015, and they also ventured beyond XBRL into other information standards such as JSON etc, which for example, is used by for GST filings in India.

Company has recently launched a filing platform IRISGST to help businesses comply with the GST regime.

With their main office in India and subsidiaries in the USA, Singapore and Italy they have been able to provide services to their clients across global market covering several countries including Mauritius, South Africa, United States of America, United Kingdom, Singapore, Nepal, Singapore, Kuwait, Macedonia, UAE, etc.


Management Team:

  1. Mr.Swaminathan Subramaniam (Designation: Chief Executive Officer (CEO) & Whole-Time Director)
  2. Mr. Balachandran Krishnan (Designation: Whole-Time Director)
  3. Ms. Deepta Rangarajan (Designation: Whole-Time Director)


Should you Invest in this IPO?

  • It seems the company management came with the IPO at this point of time, when the financials are in doldrums because it seems that they are not getting any new orders, otherwise no one comes with the IPO when its financials are at all time low.
  • Now a days we are hearing a lot of news in the media about IT companies not getting any new orders from US & also due to automation, after looking at this company’s financials it seems that IT industry is in serious trouble.(revenues have decreased drastically)
  • But the only positive that i see for this company is that they have been choosen as GST Suvidha Provider (GSP),because of which their financials may improve in the near future, but only time will tell how much they will gain in terms of revenue.
  • My opinion would be to avoid this IPO at this point of time, but keep a track on the company’s financials for next few quarters, if it is showing any improvements then it would be better to invest at that point of time because it may give decent returns in future.



Update: (As on 21st December 2017) 

In the Above IPO Review we had said many things about the Company but on 21st December 2017 we received a mail from Mr. Swaminathan Subramaniam (Chief Executive Officer) Clarifying certain things regarding the Company which we had said during the IPO Review.

Management said the Following things:

Iris business is not a service based Company but a IT Product Company.(Company used to do service based work but they have exited the Service space , that’s the reason their numbers were down during that period of time)

Management has also clarified that “GST is not the mainstay of their business & there are other areas  in which have been growing Steadily. Moreover Management had also said that their Order Book is around Rs.39.2 cr (Last year revenue was around Rs.27 cr)

During the IPO we had said that “keep a track on the company’s financials for next few quarters“. It seems what we had said about the company was right because if you see the stock has given very good returns. (We had said this because we had a gut feeling that the company is run by very Good Management Team & any company which is run by a good management is bound to reach new heights in the future)

We have also noticed that the promoters have increased their stake since the IPO (From 39.29% to 39.31%)

Moreover we are very thankful to Mr. Swaminathan, that he has taken time to clarify certain things about the company.

Markets Guruji Team


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Mr. Swaminathan
48,72,168 NA
Ms. Deepta Rangarajan 14,42,052 0.13
Mr. Balachandran Krishnan 11,04,000 NA


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake
S Swaminathan 35.11% 25.81%
Deepta Rangarajan 10.39% 7.64%
K Balachandran 7.96% 5.85%
Total 53.46% 39.29%


Objectives of the Issue:

  • Repayment of debt.
  • Sales & Marketing.
  • Expenditure on Product Development.
  • General Corporate Purpose.


Fund Utilisation:

Particulars Amount (Rs. in Crores)
Repayment of debt 3.00
Sales & Marketing 4.00
Product Development 5.00
General Corporate Purpose 3.51
Net Proceeds 15.51


Check IPO Allotment Status:

Link InTime Website


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17
Revenue 62.86 68.45 56.32 32.90 27.54
Net Profit 7.10 8.89 2.95 (-7.54) (-9.63)


Peer Group Comparison:

There are no listed companies in India that engage in a business similar to that of IRIS Business Services Ltd. Hence we cannot do any comparison.


IPO Details:

Details Info
Issue Opens on 29th September 2017
Issue Closes on:. 4th October 2017
Issue Price Rs.32
Face Value Rs.10
Minimum Lot 4000
Minimum Investment Rs.1,28,000
Issue Constitutes 26.50%
Issue Size Rs.16.01 cr
Market Cap Rs.60.41 cr
Listing at BSE SME
Equity Shares Offered 50,04,000
Equity Shares Prior 1,38,75,162
Equity Shares after the issue 1,88,79,162


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
(-6.94) NA (-50.46%) 13.76


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Avoid NA NA