DiGiSPICE Technologies Limited has announced an extension to the timeline for its acquisition of Class B shares in Spice Money Limited from Sood Infomatics LLP. In a regulatory filing dated March 31, 2025, the company informed that due to operational delays, the indicative time for completion of the transaction has been extended from the original deadline of March 31, 2025, to April 30, 2025. This acquisition involves 869,030 Class B shares, representing 100% of Class B shares and 1.94% of the total shareholding in Spice Money Limited, for a cash consideration of Rs. 4.5 Crore. The mutual agreement for this extension was executed on March 31, 2025, at 01:01 PM (IST).
The original agreement to acquire these shares was disclosed by DiGiSPICE Technologies on February 20, 2025. Spice Money Limited is a material subsidiary of DiGiSPICE Technologies and operates in the tech-enabled Hyper Local Payments sector, offering various services including cash deposit/withdrawal, Aadhar enabled payment services, airtime recharge, POS services, cash management services, and UPI-based services. For the financial year ended March 31, 2024, Spice Money reported a turnover of Rs. 439.43 Crores, a profit after tax of Rs. 13.06 Crores, and a net worth of Rs. 101.72 Crores. The acquisition aims to provide an exit to Sood Infomatics LLP and consolidate DiGiSPICE’s stake in Spice Money Limited.
Key Points ✓
📌 Timeline Extension: DiGiSPICE has extended the completion deadline for acquiring Class B shares in Spice Money from March 31 to April 30, 2025.
📌 Acquisition Details: The company will acquire 869,030 Class B shares (100% of Class B shares) representing 1.94% of total shares in Spice Money Limited.
📌 Financial Terms: The acquisition will be completed through cash consideration of Rs. 4.5 Crore.
📌 Purpose: This acquisition will provide an exit to Sood Infomatics LLP (SIL) and consolidate DiGiSPICE’s stake in Spice Money.
📌 Not a Related Party Transaction: The company has clarified that this acquisition does not fall within related party transactions.
📌 Regulatory Compliance: The announcement was made in compliance with Regulation 30 of SEBI Listing Regulations.
📌 Original Agreement Date: The initial agreement was executed on February 20, 2025, at 22:06 Hours (IST).
📌 Extension Agreement Date: The mutual agreement for timeline extension was executed on March 31, 2025, at 01:01 PM (IST).
Potential Market Impact
The timeline extension for this acquisition is likely to have minimal direct impact on DiGiSPICE’s stock price in the immediate term, as:
- The transaction size is relatively small (Rs. 4.5 Crore) compared to the overall operations of DiGiSPICE.
- The extension appears to be due to operational delays rather than any fundamental issues with the transaction.
- The acquisition is strategic in nature, aimed at consolidating ownership in an existing material subsidiary.
However, investors should note that:
- This acquisition represents DiGiSPICE’s commitment to strengthening its position in the fintech space through Spice Money.
- The consolidation may lead to more streamlined decision-making and potentially better operational integration.
- Long-term investors might view this positively as part of the company’s strategy to enhance its digital payments ecosystem.
Company Overview
DiGiSPICE Technologies Limited (NSE: DIGISPICE, BSE: 517214)
DiGiSPICE Technologies Limited is a technology company incorporated in 1986 and headquartered in New Delhi, India. The company is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). DiGiSPICE operates primarily in the technology sector with focus on digital solutions and fintech services.
Key Subsidiary – Spice Money Limited:
- Incorporated on April 4, 2000
- Engaged in tech-enabled Hyper Local Payments services
- Offers a range of financial services including cash deposit/withdrawal, Aadhar enabled payments, airtime recharge, POS services, and UPI-based solutions
- Financial Performance (FY 2023-24):
- Turnover: Rs. 439.43 Crores
- Profit After Tax: Rs. 13.06 Crores
- Net Worth: Rs. 101.72 Crores
Three-Year Turnover History of Spice Money:
- FY 2023-24: Rs. 439.43 Crores*
- FY 2022-23: Rs. 948.82 Crores
- FY 2021-22: Rs. 858.12 Crores
*Note: The significant reduction in reported turnover for FY 2023-24 was due to a change in accounting methodology, where income from recharge of airtime coupons was recognized on a net basis instead of gross basis.
🔍 Did You Know? The fintech revolution in India has created massive opportunities for tech-enabled payment solutions, especially in semi-urban and rural areas. Companies like Spice Money are at the forefront of financial inclusion through their tech solutions.
💡 Investor Insight: Strategic consolidations like these can often streamline operations and improve decision-making efficiency. What other fintech acquisitions have caught your attention recently?
⚖️ Market Perspective: While the transaction size may seem modest at Rs. 4.5 Crore, it’s the strategic intent behind consolidating ownership that matters more for long-term investors.
What’s your take on DiGiSPICE’s move to consolidate its stake in Spice Money? Share your thoughts in the comments below!
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
