Penny stock under ₹5 hits upper circuit after acquisition of AI company

Penny stock under ₹5: Avance Technologies share price hit the 5% upper circuit in Thursday's trading session after the company acquired a 100% stake in a Hyderabad-based AI firm, foraying into the rapidly expanding global artificial intelligence market, which is estimated to reach $2.4 trillion by 2032.

The penny stock opened at ₹1.90 apiece on Thursday, as compared to its closing price of ₹1.91 on Wednesday. During the day, the stock rose to the day's high of ₹2, also its 5% upper price band.

What's behind the rally?

In an exchange filing, Avance Technologies said that it has signed a non-binding term sheet to acquire up to 100% equity stake in Pushpak AI, a Hyderabad-based Computer Vision and Edge AI platform.

The proposed acquisition signals Avance Technologies’ foray into the fast-growing visual intelligence and edge AI space, which is seeing rapid adoption across sectors such as manufacturing, infrastructure, smart cities, retail, logistics, and industrial automation.

Through this acquisition, Avance Technologies would gain complete strategic and operational control, enabling closer integration of Pushpak AI’s intellectual property, technology platforms, and enterprise partnerships to support long-term value creation for shareholders.

“The proposed acquisition in Pushpak AI aligns with our strategy of building ownership in scalable, IP-led technology platforms with proven enterprise adoption. Full ownership enables us to drive deeper integration, accelerate go-to-market execution, and unlock long-term value from the rapidly expanding AI and computer vision ecosystem,” said Latesh Poojary, Managing Director of Avance Technologies Limited.

Pushpak AI is a computer vision and Edge AI analytics platform incubated at T-Hub, Hyderabad, that specialises in converting visual data into actionable insights. It analyses camera feeds, videos, images, and documents at the edge, delivering low-latency intelligence and real-time alerts.

The company has also developed a broad and reputable enterprise client portfolio, catering to prominent organisations across sectors such as automotive, infrastructure, manufacturing, smart cities, logistics, and financial services. Its solutions are used by several marquee clients, including Maruti Suzuki, TVS Motor Company, Hero, Larsen & Toubro, Adani Group, CMS Info Systems, IndiCold, Envoys, Everest Fleet, and Smart City Bhubaneswar.

Avance Technologies share price overview

The penny stock has been on a bull run since its listing in 2022 despite market volatility. The stock has given exceptional multibagger gains of 110.53% in just a month and 127% in six months.

In the last five years, the penny stock under ₹5 has more than quadrupled investors' money by delivering a whopping 3900% returns.

Avance Technologies' share price is only listed on the BSE. The penny stock hit a 52-week high of ₹3.15 on September 9, 2025 and hit a 52-week low of ₹0.52 on April 1, 2025.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.