Shares of this small-cap IT stock hit the 5 percent upper circuit after the acquisition of a leading digital entertainment platform. In the last one week, the company’s stock has gained over 20 percent.
With a market capitalization of Rs 2,942.77 crores, the stocks of Aurionpro Solutions Limited opened their trading hour at Rs 1236.45 on Thursday hitting the 5 percent upper circuit and, since then, have been locked at the same price. The mentioned price also marks the company’s new 52-week high level.
Such movements in the company’s stock prices were observed after the company, in a filing with the Bombay Stock Exchange (BSE) dated 6th September 2023, announced the acquisition of “Interact DX”, a leading digital engagement platform for the BFSI industry.
Interact DX integrates interactive marketing and customer communications to deliver next-gen customer engagement for financial institutions, Insurers, and banks. The above-mentioned transaction is subject to shareholder approval and is expected to be completed by September 30th, 2023.
In addition to the above, the company proposes a payment of a Final Dividend of Rs 2.50 per equity share, i.e., a 25 percent payout compared to the Face Value of Rs 10 per equity share.
Year-to-date, the company’s stock has delivered multibagger returns of around 260 percent, i.e., a 1 Lakh investment into the stock would have converted to Rs 3.60 Lakhs if someone had invested in the company’s stock.
During the recent quarters, the company has marginally improved its financial performance by increasing the operating revenue as well as the bottom line numbers. The former moved up from Rs 190 crores during Q4FY22-23 to Rs 198 crores during Q1FY23-24, and the latter went up from Rs 26 crores to Rs 31 crores keeping the timeframe the same.
As per the shareholding data available for the June 2023 quarter, the company’s Promoters hold a 31.19 percent stake, and the Foreign Institutional Investors (FIIs) hold a 2.9 percent stake in the company.
Aurionpro Solutions Limited is engaged in the business of providing global technology solutions supported by a wide range of offerings catering to varied customers including governments, large banks & financial institutions, etc. The company derives revenue from consultancy and IT services among others.
Written by Amit Madnani
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