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MPS Ltd Approves ADI BPO Merger, Posts ₹352.4 Million Profit in Q1 on Strong Publishing Tech Momentum


Updated: July 18, 2025 12:45

Image Source: The Economic Times
MPS Ltd has received board and shareholder approval for the amalgamation of ADI BPO Services Pvt Ltd into the company, marking a strategic consolidation of its ownership and operational structure. The move coincides with a robust Q1 FY26 performance, with consolidated revenue from operations at ₹1.86 billion and net profit at ₹352.4 million.
 
Key Highlights:
  • ADI BPO, which holds a 67.77% stake in MPS, will be merged into MPS Ltd to simplify the corporate structure and eliminate subsidiary layering restrictions under the Companies Act.
  • The merger follows the demerger of ADI BPO’s infrastructure management business into ADI Media Pvt Ltd, ensuring MPS remains focused on publishing technology and content services.
  • The amalgamation will result in direct promoter holding in MPS, enhancing transparency and governance.
Strategic Context:
  • MPS has completed five global acquisitions in recent years, including Element LLC, EPS Inc., and THINK Subscription, expanding its footprint in educational publishing and digital content platforms.
  • The restructuring is expected to unlock acquisition flexibility, allowing MPS to pursue inorganic growth without regulatory constraints.
  • ADI BPO’s assets, primarily land and equity in MPS, will be absorbed, while infrastructure assets remain with ADI Media.
Market Outlook:
  • MPS’s Q1 results reflect an 18.9% net margin, supported by its asset-light model and global client base.
  • Analysts expect the merger to streamline operations, improve shareholder value, and support future capital market initiatives.
Sources: M&A Critique, Business Standard, MPS Corporate Filings, Investing.com, BSE India (July 2025)

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