Novus Loyalty has signed a term sheet to acquire an 80.87% stake in AutoPe Payment Solutions for approximately Rs 105.13 crore in an all-cash deal. Valued at Rs 130 crore, the acquisition will be completed in tranches over the next 10 months, pending due diligence and regulatory approvals. The move aims to drive operational synergies and business expansion for Novus Loyalty.
Novus Loyalty to Acquire 80.87% Stake in AutoPe for Rs 105 Crore
Novus Loyalty Limited will acquire an 80.87% stake in AutoPe Payment Solutions for Rs 105.13 crore. The deal values the target firm at Rs 130 crore on a fully diluted basis.
Reader Takeaway: Acquisition boosts growth through operational synergies; execution depends on due diligence and completion of staged payments.
What just happened
Novus Loyalty has inked a term sheet to take a controlling 80.87% stake in AutoPe Payment Solutions. This cash-based transaction, valued at Rs 130 crore for the total equity, will be executed in tranches. The company expects the entire process, including the signing of a definitive Share Purchase Agreement, to conclude within 10 months.
Why this matters
The acquisition integrates AutoPe’s payment solutions into Novus Loyalty’s portfolio. AutoPe has shown consistent financial growth, with revenue climbing from Rs 44.85 crore in FY23 to Rs 62.10 crore in FY25. Profit after tax also saw a significant jump from Rs 7.62 crore to Rs 13.60 crore over the same period, signaling a robust addition to the buyer's balance sheet.
Strategic Rationale
Management stated that the purchase is designed to support long-term strategic growth and operational synergy. By expanding its presence in the payment solutions market, Novus Loyalty aims to strengthen its competitive position.
Transaction Nuances and Watch Points
- Arm's Length Deal: The company confirmed this is not a related party transaction; promoters hold no interest in AutoPe.
- Regulatory Hurdles: The deal remains subject to standard statutory and regulatory approvals. If share swaps are introduced by selling shareholders, specific SEBI (ICDR) regulations will apply.
- Execution Timeline: Because the deal involves multiple tranches, investors should monitor the progress over the next 10 months, particularly the completion of the first tranche.
What to track next
Watch for the announcement of the definitive Share Purchase Agreement and the successful completion of the due diligence process. Any updates on the timeline for final payment tranches will be key indicators of deal momentum.