Shares of the penny stock in the business of E-Governance & IT Business, trading under Rs.60, surged 2 percent to hit the upper circuit following the announcement of a strategic Memorandum of Understanding (MoU) with Ekansh Concepts Ltd. This partnership aims to collaborate on a smart city project, boosting investor confidence and driving increased demand for the stock.
During Tuesday’s trading session, the shares of VL E-Governance & IT Solutions Ltd reached an intra-day high of Rs.59.67 per share, hitting a 2 percent upper circuit from its previous close of Rs.58.50 each. Over the past two years, the shares have delivered over 70 percent returns.
MoU For Smart City Project
VL E-Governance & IT Solutions Limited (VLE) has entered into a Memorandum of Understanding (MoU) with Ekansh Concepts Limited to serve as the Engineering, Procurement, and Construction (EPC) partner for the Sankalp Industrial Smart City Project. This collaboration marks a significant step towards executing a major infrastructure development.
The Sankalp Industrial Smart City is strategically positioned at the intersection of the Mumbai–Nagpur Samruddhi Mahamarg and Delhi – Mumbai Expressway, covering 494 acres in its initial phase. With an estimated EPC contract worth around Rs.800 crores, the project aims to deliver a blend of industrial, residential, and logistics infrastructure.
Phase I will feature rooftop solar installations, captive power systems, power distribution services, data centers, extensive warehousing, and a residential township equipped with smart technologies. Future phases will expand the project’s footprint to over 1,400 acres, further enhancing its multi-sector urban and industrial development vision.
Management Commentary
Speaking about the collaboration, Mr. Sanjay Nandwana, Managing Director of VL E-Governance & IT Solutions Limited, stated: “We are extremely proud to join hands with Ekansh Concepts Limited on the Sankalp Industrial Smart City Project. This collaboration underscores VL E-Governance’s unwavering commitment to pioneering sustainable, state-of-the-art infrastructure solutions that not only meet today’s needs but anticipate tomorrow’s challenges.
By integrating green energy technologies, such as rooftop solar arrays and open-access power models with advanced digital platforms for traffic management, surveillance, and utility monitoring, we are setting a new benchmark for smart urban ecosystems in India.”
Business Highlights
VL E-Governance (VLEG) has made significant strides, registering over 50 million identities through the Aadhaar initiative, enhancing access to government services and financial inclusion. The company also expanded its global footprint with projects like the Philippines Land Titling Computerization, digitizing 20 million land records to improve transparency and efficiency.
VLEG’s strategic 26 percent stake in HAL-Edgewood Technologies Private Limited marks its entry into the aviation, aerospace, defense, and satellite sectors, supporting high-tech innovation and national defense under the “Make in India” initiative. Committed to sustainability, VLEG integrates eco-friendly practices across its operations, aligning with global environmental goals.
Financial Performance
According to its recent financial update, VL E-Governance & IT Solutions Ltd reported a consolidated revenue of Rs.15.21 crore in Q3 FY25, compared to nil in Q3 FY24 and showing a strong 90.11 percent increase from Rs.7.99 crore in Q2 FY25.
Net profit rose to Rs.0.94 crore in Q3 FY25, reversing a loss of Rs.1.03 crore in Q3 FY24. Sequentially, net profit grew by 16.05 percent from Rs.0.81 crore in Q2 FY25, reflecting improved operational performance.
Written by – Siddesh S Raskar
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