The shares of a small-cap company providing technology solutions to the defense, power distribution, and semiconductor industries reached a 5 percent upper price band. This surge in stock price follows the incorporation of its semiconductor subsidiary, aimed at targeting the expanding semiconductor market.
Share price movement
In Monday’s trading session, the shares of Trident Techlabs Limited hit a 5 percent upper price limit to Rs.834.95 per share, from its previous close of Rs.795.2 apiece. The share has retreated since then and is trading at Rs.828 apiece.
Rationale for Rise
Trident Techlabs Limited acquired 100 percent equity in its newly incorporated subsidiary, Techlabs Semiconductor Private Limited, with an investment of Rs.1,00,000.
The subsidiary will focus on semiconductor design, development, and consultancy services, operating under an authorized share capital of Rs.10,00,000 and paid share capital of Rs.1,00,000.
This acquisition is classified as a related party transaction, as Techlabs Semiconductor is wholly owned by Trident Techlabs. Regulatory approval for its incorporation has been received, and the subsidiary has been established without any prior operations.
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Acquisition Objective
The wholly-owned subsidiary is established to function as a fabless design house specializing in product and system design using semiconductor process technologies.
It aims to provide services related to the design, development, and fabrication of semiconductor chips and systems for various applications while engaging in research and development activities focused on IP design and system design. Additionally, the subsidiary will offer expert consultancy services in its domain.
Semiconductor Technology
Trident Techlabs is enhancing its semiconductor solutions by integrating new technologies, including advanced Electronic Design Automation (EDA) tools in collaboration with Mentor Graphics. This partnership improves proficiency in very large-scale integration (VLSI) design and addresses challenges in nanotechnology.
Additionally, the company is integrating advanced data analytics and AI tools for better decision-making in semiconductor design while focusing on smart grid technologies to manage renewable energy complexities.
Financial Performance
Trident Techlabs Limited reports financial results semi-annually. In H2FY24, the company’s revenue from operations soared by 620 percent year-on-year to Rs.64.24 crore, up from Rs.8.92 crore in H2FY23. Additionally, Profit After Tax (PAT) improved significantly to Rs.12.46 crore in H2FY24, contrasting with a net loss of Rs.10.1 crore in H2FY23.
Company Profile
Trident Techlabs specializes in providing advanced engineering solutions across multiple sectors, including aerospace, defense, and telecommunications. The company emphasizes ASIC design, data analytics, and power system solutions, employing over 150 professionals dedicated to driving innovation and ensuring customer satisfaction.
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Written by – Siddesh S Raskar
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