The shares of this small-cap company have fallen up to 4.2 percent in intraday after the promoter of the company is likely to offload equity shares valued at Rs 114.6 crore.
With a market capitalization of Rs 12,596.07 crore, the shares of C.E. Info Systems Ltd were trading in red at Rs 2,329.90 per share, decreasing around 3.57 percent as compared to the previous closing price of Rs 2,416.10 apiece.
Matter Explanation:-
As of March 2024, Rakesh Kumar Verma, the promoter of the company, holds 2.3 crore equity shares which is equivalent to 42.84 percent of C.E. Info Systems Ltd, however, the promoter is likely to offload 0.9 percent in the company which is valued at Rs 114.6 crore. The transaction, set at a floor price of ₹2,293.20 per equity share, represents a 1% discount to the scrip’s today’s price of ₹2,413 on the NSE. JM Financial is the broker in the deal. CNBC reported that
Financial Performance:-
Looking forward to CE Info tech’s financial performance, revenue magnified significantly by 49 percent from Rs 72 crore in Q4FY23 to Rs 107 crore in Q4FY24, during the same period, net profit soared 35 percent from Rs 28 crore to Rs 38 crore.
Future Outlook:-
The company’s IoT business has a SaaS model with a hardware component. The IoT business is projected to grow tenfold over the next four to five years, while the automotive, corporate, and government industries will grow three, four, and six times, respectively.
The company has a healthy order book worth Rs 1,372 crore. The company received a ₹400 crore order from Hyundai Kia in January-March for its mapping business, which would begin in the second quarter of FY25.
Investor Distribution:-
Examining the company’s recent shareholding pattern, the promoter owns 52.91 percent of the company, retail investors own 35.64 percent, domestic institutional investors own 4.73 percent at last Foreign institutional investors own 6.73 percent.
Company profile:-
CE Info Systems Ltd produces digital maps, geospatial software, and location-based IoT solutions. The Company’s business sector focuses on map data and related services. The company provides digital map data, GPS navigation, and location-based services, along with licensing, royalty, annuity, subscription, and product customization options for clients.
Written by:- Abhishek Singh
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