Small Cap Stock specialized in providing e-governance services, IT/ITES system integration, B2B trading, and many more hit a 5 percent upper circuit in the day’s trade upon acquiring a stake in Hindustan Aeronautics Limited Joint Venture.
Price Action
With a market capitalization of Rs. 1,747.67 Crores, the shares of VL E-Governance & IT Solutions Limited hit a 5 percent upper circuit in the day’s trade at Rs. 164.95 per equity share, from its previous day’s close price of Rs. 157.10. It has a delivered a multibagger return of 405 percent in a year.
What Happened
VL E-Governance & IT Solutions Limited has entered into a binding term sheet with Edgewood Technologies Private Limited, Bangalore for the acquisition of a 14 percent equity stake in HAL-Edgewood Technologies Private Limited (HETL) for a consideration of Rs. 21.53 Lakhs.
HAL-Edgewood Technologies Private Limited is a joint venture firm between Hindustan Aeronautics Limited, Edgewood Ventures LLC, USA, and Edgewood Technologies Private Limited, Bangalore, India.
It has developed next-generation state-of-the-art Mission Computers for Military Aviation / Aircraft. It is engaged in the design, development, manufacture, or promotion of high-tech projects/products such as to carry on the business and promote research design and development in the field of electronics, software, hardware, and aeronautical systems required for aviation, aerospace, and satellite projects.
Also Read: Infra stock hits 5% circuit after receiving order worth ₹34 Cr from Hindustan Copper Ltd
VL E-Governance & IT Solutions Limited had earlier entered into a binding term sheet with Edgewood Ventures LLC, USA for the acquisition of a 26 percent equity stake in HAL-Edgewood Technologies Private Limited (HETL). Post completion of both acquisitions, VL E-Governance holds a 40 percent equity stake in HETL.
About the Company
VL E-Governance & IT Solutions specializes in providing e-governance services, IT/ITES system integration, B2B trading, and IT/ITES equipment trading. It also functions as a systems integrator and end-to-end service provider for various e-government projects.
Financials & Ratios
Its Revenue from operations grew by 218 percent QoQ from Rs. 2.51 Crores in Q1FY25 to Rs. 7.99 Crores in Q2FY25, accompanied by profits of Rs. 61 Lakhs to Rs. 81 Lakhs.
Also Read: Bluechip stock jumps after receiving order worth ₹1,000 Cr from Rashtriya Chemicals & Fertilizers
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
