The shares of a Micro-Cap company, specialzing in providing professional and technical consulting services in the domains of product development, data science, and analytics, hit a 20 percent upper circuit following the Board’s approval of a proposal for the partial sale of its stake in Mihup.
Price action
With a market capitalization of Rs. 157.39 Crores on Monday, the shares of Xelpmoc Design and Tech Limited hit a 20 percent upper circuit, making a high of Rs. 106.92 compared to its previous closing price of Rs. 89.10.
What Happened
Xelpmoc Design and Tech Limited, which provides professional and technical consulting services in the domains of product development, data science, and analytics, has announced that its Board has approved the part sale of its investment in Mihup Communications Private Limited.
As part of this transaction, the company will transfer 11,782 Series Seed CCPS at Rs. 8,487.32 per share, amounting to a total consideration of Rs. 100 million, under a proposed Share Purchase Agreement.
About the Company
Xelpmoc Design and Tech Limited, established in 2015 and headquartered in Bengaluru, India, specializes in providing professional and technical consulting services. The company offers a comprehensive range of solutions, including product development, data science, analytics, mobile and web application development, and prototype development.
Management Commentary
Mr. Sandipan Chattopadhyay, MD & CEO, Xelpmoc Design and Tech Limited, said: “I am excited to announce that the Board has approved the proposal for part sale of our stake in Mihup. This is a landmark transaction for Xelpmoc and validates our thesis of exiting startups post our targeted 7-year holding period.
Consistent with our capital allocation priorities, we intend to utilize the proceeds from this transaction primarily to support organic growth and pursue value-creating investments in the field of AI, ML, and data sciences.”
Products and services
The company offers notable products developed by the company, including X-Pand, X-Tact, Claire.ai, and DocuXray.ai, which cater to needs in location intelligence, public sentiment analysis, natural language processing, and document data extraction, respectively.
Financials
The company’s revenue declined by 23.74 percent, from Rs. 1.39 crore to Rs. 1.06 crore in Q3FY24-25. Meanwhile, the net profit declined from a profit of Rs. 0.64 crore to a loss of Rs. 2.06 crore during the same period.
Written by Sridhar J
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