On 12th September 2024, MOS Utility Limited announced its acquisition of a 51% equity stake in Samvriddhi Inclusive Growth Network Private Limited, further expanding its presence in India’s growing financial inclusion sector. This acquisition is a significant step towards enhancing MOS Utility's banking services segment, helping the company reach new heights in providing inclusive financial services.

This move aligns with MOS Utility’s strategic plan to grow its financial service portfolio and tap into the pan-India network of Samvriddhi, which has an impressive presence in the financial inclusion sector. As Mansi Bhatt, Company Secretary & Compliance Officer of MOS Utility, highlighted in the announcement, the acquisition represents the company's commitment to expanding its service offering and reaching underserved segments of the population through innovative financial solutions.

Key Acquisition Details:

Acquired Entity: Samvriddhi Inclusive Growth Network Private Limited, a company engaged in providing financial inclusion services across India.

Percentage Acquired: MOS Utility Limited is acquiring 51% equity shares, which translates to 21,191 equity shares of ₹10 each.

Acquisition Terms: The acquisition is executed through a cash consideration with MOS Utility purchasing shares at par.

Completion Timeline: The acquisition is expected to be completed by September 2024.

Samvriddhi Inclusive Growth Network Private Limited, incorporated on 10th June 2010, has established itself as a key player in India’s financial inclusion sector. The company, through its network of agents, offers financial services across the country, catering to underserved communities and regions. Over the past three years, Samvriddhi has demonstrated strong financial performance with turnover figures as follows:

2020-2021: ₹11.80 crore

2021-2022: ₹13.86 crore

2022-2023: ₹15.08 crore

(Provisional turnover for 2023-2024 is ₹18.73 crore.)

With this acquisition, MOS Utility aims to enhance its footprint in the banking and financial services sector, further strengthening its role in providing inclusive services to people across India. This deal will help MOS Utility leverage Samvriddhi's established network of agents, allowing the company to expand its reach and deliver reliable financial services to a broader audience.

The acquisition does not fall under related party transactions, ensuring that it is conducted at arm’s length, in compliance with regulatory guidelines. The Securities and Exchange Board of India (SEBI) mandates under Regulation 30 and the SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023 have been followed closely in this acquisition.

Business Impact of the Acquisition

By acquiring Samvriddhi Inclusive Growth Network Private Limited, MOS Utility will now be in a stronger position to offer comprehensive financial inclusion services across India. This acquisition is particularly beneficial for enhancing digital banking services, especially in rural and semi-urban regions, where financial services are often limited.

With Samvriddhi's established client base, MOS Utility can offer a range of products such as banking services, financial advisory, digital payments, and financial literacy programs, thus creating a more inclusive financial ecosystem. This acquisition is also expected to positively impact MOS Utility's financial performance in the coming fiscal years, helping it scale its operations and achieve broader market penetration.

MOS Utility is already known for its innovative approach in the utility services market, and this strategic acquisition will complement its existing offerings by adding new capabilities in financial services. The move is expected to further strengthen the company's position as a leader in digital payments and financial inclusion in India.

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This acquisition marks a pivotal moment for MOS Utility Limited, setting the stage for future growth and innovation in the financial services sector, particularly in digital inclusion and banking services. As the company continues to expand, investors and market participants will be watching closely for the potential impact this deal will have on MOS Utility's market performance and overall business trajectory.