10 Consecutive Upper Circuits in this Penny Stock Under Rs 25: Major Updates Announced; Details Inside
The stock is up 99 per cent from its 52-week low of Rs 14.95 per share.
On Tuesday, the shares of Blue Cloud Softech Solutions Ltd hit a 2 per cent upper circuit to Rs 29.71 per share from its previous closing of Rs 29.13 per share. The stock’s 52-week high is Rs 130.50 per share and its 52-week low is Rs 14.95 per share. The shares of the company have been hitting the upper circuit for the 10th straight day.
Blue Cloud Softech Solutions Ltd. (BCSSL) is set to significantly increase its financial flexibility and expand its global footprint through two major strategic moves. The company's Board of Directors will meet on June 27, 2025, to approve a substantial increase in its long-term borrowing limit, and they have already greenlit the acquisition of a US-based technology provider, AIS Anywhere.
Enhanced Borrowing Capacity to Fuel Growth
BCSSL plans to raise its maximum long-term borrowing limit to Rs 2,000 Crore. This new limit will cover various types of loans, including those not based on direct funding (like guarantees) and those that are (like traditional loans). This amount will be either Rs 2,000 Crore or the combined total of the company's paid-up capital, free reserves, and securities premium, whichever is higher.
This crucial increase, which requires shareholder approval via a Special Resolution, will enable the company to secure diverse financing options, including debentures and bonds, in both Indian and foreign currencies. To support these borrowings, the company will also seek approval to create charges on its assets, both existing and future. This move aims to provide the company with the necessary funds to support future business operations and seize new opportunities.
Strategic Acquisition of AIS Anywhere via Share Swap
In a significant move to expand its presence in the US market and enhance its technology offerings, Blue Cloud Softech Solutions Ltd. is acquiring AIS Anywhere, a New Jersey-based global technology solutions provider. The acquisition, valued at Rs 730.54 crore, will be a 100% share swap transaction.
Under the terms of the deal, Blue Cloud Softech will issue 31.68 crore of its equity shares in exchange for 6.4 crore shares of AIS Anywhere. This means 4.95 Blue Cloud shares will be issued for every 1 AIS Anywhere share, making AIS Anywhere a wholly-owned subsidiary of Blue Cloud.
The acquisition, valued at Rs 730.54 crore, involves a share exchange ratio of 4.95 Blue Cloud shares for every 1 AIS Anywhere share. Notably, Mrs. Janaki Yarlagadda, a Promoter/Director who previously held 44.53% in AIS Anywhere, will have no holding in AIS Anywhere post-acquisition; instead, she will be allotted 14,10,75,000 shares in Blue Cloud, while M/s Siraj Holding LLC will receive 17,57,25,000 shares, with the issue price set at Rs 23.06 per equity share (comprising Rs 1 face value and Rs 22.06 premium). AIS Anywhere has demonstrated consistent growth in turnover, reporting USD 83.69 million in 2024, USD 72.68 million in 2023, and USD 64.23 million in 2022.
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Strategic Benefits:
This acquisition is a strategic fit for Blue Cloud Softech, aligning with its goals for horizontal business expansion and increased access to the lucrative US market. AIS Anywhere brings valuable expertise in key technological domains, including Artificial Intelligence (AI), Data Analytics, Cybersecurity, Internet of Things (IoT), and Enterprise Solutions, further strengthening Blue Cloud's capabilities in the evolving digital landscape. The acquisition is expected to be completed within 12 months.
About the Company
Headquartered in Hyderabad, Telangana, Blue Cloud Softech Solutions Limited (BCSSL) is a pioneering provider of AIoT-based solutions specialising in AI-driven healthcare and technology products. With a steadfast commitment to innovation, BCSSL empowers businesses and communities alike by delivering cutting-edge, indigenous technology solutions that drive measurable transformation.
According to Quarterly Results, the company reported net sales of Rs 183.62 crore in Q4FY25 and net profit increased by 52 per cent to Rs 13.04 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 59 per cent to Rs 796.86 crore and net profit increased by 175 per cent to Rs 44.27 crore in FY25 compared to FY24.
The stock is up 99 per cent from its 52-week low of Rs 14.95 per share. Shares of Blue Cloud Softech Solutions Limited ex-traded stock split in the ratio 2:1, i.e., sub-division of equity shares of the company having a Face Value of Rs 2 each (fully paid-up) into one equity share of face value of Re 1 each (fully paid-up). The ex-date for the stock split was Monday, January 20, 2025. The company has a market cap of over Rs 1,290 crore.
Disclaimer: The article is for informational purposes only and not investment advice.