Virinchi Limited announced the outcome of its Board Meeting held on 22nd August 2025, detailing the approval of transferring its SaaS business undertaking to a wholly owned subsidiary to be incorporated, referred to as NewCo. The transfer, effective from 1st April 2025, is on a slump sale basis. The purpose is to unlock shareholder value by creating a focused entity for the SaaS business with plans for an IPO immediately after the incorporation, subject to SEBI and exchange approvals. The Board also appointed M/s. Arihant Capital Markets Limited as the lead manager for the IPO and pre-IPO placement activities.

The slump sale involves transferring all assets, liabilities, employees, contracts, intellectual property, and goodwill related to the SaaS business to NewCo, which Virinchi will own 100%. The valuation is being conducted for tax, accounting, and regulatory compliance purposes, not directly impacting the economic interest of Virinchi shareholders until external investors join through IPO. The proceeds from the offer for sale will be used for debt reduction and enhancing the healthcare vertical in the parent company, while fresh equity proceeds will fuel SaaS business growth. Other Board decisions include re-appointment of key directors and secretarial auditor.

Virinchi Limited is a technology and healthcare-focused company with significant interests in SaaS solutions and healthcare services. The company has strategically diversified its business with ongoing investments in software technology and healthcare infrastructure. Recent activities include advancing its SaaS capabilities and pursuing regulatory approvals for IPO and corporate restructuring to improve operational focus and shareholder value.

In the quarter ended June 2025, Virinchi Limited reported revenue of Rs. 72 Crores with a net profit of Rs. 5.2 Crores. Compared to Q1 2025, revenue grew by 5% and net profit by 10%. Year-on-year, revenue increased by 15% while net profit rose 18%, reflecting steady operational performance and growth potential in its SaaS and healthcare verticals. Institutional investors have recently shown focus on Virinchi’s growth prospects, given the IPO plans.