The shares of the leading IT stock surged by 5 percent, hitting the upper circuit, following the announcement of a distribution agreement with a Norway-based company to market and distribute fire safety solutions in the Indian market.
Price Movement
In Thursday’s trading session, Anlon Technology Solutions Ltd.’s share price hit 5 percent upper price band reaching Rs.525 per share from its previous close of Rs.500 apiece. The share has generated multi-bagger returns of more than 100 percent in the past six months.
What is the news
According to the exchange filing, on August 1, 2024. Anlon Technology Solutions Limited (ATSL) announced a distribution agreement with Bridgehill AS, Norway.
Anlon Technology Solutions Ltd. to market, distribute, and sell Bridgehill’s advanced fire blanket solutions in India, targeting firefighting and corporate sectors, with exclusive rights for the airport sector.
These products, including fire blankets for electric vehicles, industrial applications, and lithium batteries, are designed to quickly and effectively contain and extinguish fires, enhancing safety and response efficiency.
The collaboration marks a pivotal step for ATSL, expanding its fire safety solutions portfolio and reinforcing its commitment to offering cutting-edge products. The agreement, effective until terminated, ensures long-term benefits and strengthens ATSL’s market presence in the fire safety domain.
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Benefits of the Distribution Agreement
The distribution agreement with Bridgehill AS, Norway, is a significant boon for Anlon Technology Solutions Limited (ATSL) to tap into the growing fire safety market, particularly with products designed for emerging technologies like electric vehicles and lithium batteries.
By securing exclusive rights for the airport sector, ATSL can establish a strong foothold in a high-demand niche, potentially leading to lucrative contracts with airports across India.
The association with Bridgehill, a renowned name in fire safety, also bolsters ATSL’s brand image and credibility, likely attracting more clients and partners. The long-term nature of the agreement ensures sustained business growth and stability, providing ATSL with a reliable revenue stream and opportunities for innovation in its product line.
The global Car Fire Blanket market is expected to grow significantly, with a CAGR of 31.8 percent from 2024 to 2030. By distributing Bridgehill’s products in India, ATSL is well-positioned to capitalize on this growth and expand its market share.
Recent Orders
On July 31, 2024, Anlon Technology Solutions Limited received an order from TRV (Kerala) International Airport Limited. The contract includes custom clearance, DLP warranty, annual maintenance, and local transportation for four Crash Fire Tenders, with a total value of Rs. 1.32 crore (excluding GST). The execution period is 14 months for custom clearance and 5 years for warranty and maintenance.
Shareholder Composition
As per the shareholding pattern of June 2024, the Promoters hold a 62.06 percent stake in the company, Foreign Institutional Investors (FII) hold a 6.29 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 25.63 percent and 6.02 percent stake in Anlon Technology Solutions Limited, respectively.
Company Overview
Anlon Technology Solutions Limited specializes in engineering services, focusing on systems built on automotive chassis and related areas. The company’s expertise primarily serves airports, high-rise buildings, and refineries.
Written by – Siddesh S Raskar
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