Small-cap IT stock below ₹150 Dev IT hits upper circuit after all cash tender offer by US company
Small-cap stock Dev IT has been paying dividends for the last four years, with a final dividend of 5 per cent being recommended to eligible shareholders last month
Dev Information Technology or Dev IT stocks are one of those small-cap stock that have almost doubled shareholders' money in last one year. This small-cap IT stock has managed to deliver such a robust return to its shareholders when most of the IT giants listed on Dalal Street have given zero return to its shareholders. However, it seems that there is still some steam left in Dev It shares as the stock today hit 5 per cent upper circuit within few minutes of stock market's opening bell.
Dev IT share price today opened with upside bias and hit intraday high of ₹144.90 apiece on BSE and locked-in 5 per cent upper circuit. By hitting upper circuit today, the small-cap IT stock found no seller on second day in a row.
As per the information available on BSE website, Dev IT has informed Indian stock market exchanges about all cash offer from LT-1 Inc, a US-based company citing, "Open Offer for acquisition of up to 71,82,480 (Seventy-One Lakh Eighty-Two Thousand Four Hundred Eighty) fully paid-up equity shares of face value of ₹5/- each (“Equity Shares”) representing the entire public shareholding constituting 25.78 per cent of the Emerging Voting Capital (as defined below) of the Target Company from the Public Shareholders (as defined below) of Dev Information Technology Limited, by LT-1 Inc; (the “Acquirer”) along with Lilikoi Technologies, Inc (“PAC-1”), Lilikoi Holdings Inc. (“PAC2”) and Sanjay Chandrakant Patel (“PAC-3”) (hereinafter collectively referred to as the “PACs”) in their capacity as persons acting in concert with the Acquirer for the purpose of the Open Offer (as defined below), pursuant to and in compliance with the requirements of the SEBI (SAST) Regulations (the “Open Offer” or “Offer”)."
"The Open Offer is made at a price of ₹134.50 (Rupees One Hundred Thirty-Four and Paisa Fifty only) per Offer Shares determined in accordance with Regulation 8(1) & 8(2) of the SEBI (SAST) Regulations. Assuming full acceptance, the total consideration payable by the Acquirer under the Open Offer will be ₹96,60,43,560 (Rupees Ninety-Six Crore Sixty Lakh Forty-Three Thousand Five Hundred Sixty Only)," Dev IT added.
Sharing information about the all cash offer by the US-based company, the small-cap IT company said, "The Board, in its meeting held on June 16, 2023, has approved execution of the share purchase agreement between members of the promoter and promoter group (the sellers) and US based LT1, Inc (the acquirer), where the members of promoter and promoter group have agreed to sell 86,98,885 shares to the acquirers, and further, approved allotment of equity shares by way of preferential issue of 57,24,907 shares, at an issue price of Rs. 134.50 per share, Subject to approval from shareholders."
Dev IT shares are one of the dividend paying stocks as well. Last month, the Board of Directors recommended the final dividend of 5 per cent to eligible shareholders, which it has been consecutively doing since last 4 years. Earlier, it secured an order from Gujarat Informatics Limited from the ‘Department of Science and Technology Gujarat’ for Relational Database Management System Software (RDBMS) platform used in the digital portal for providing various services. The order is worth approx. ₹34 crore and will be executed in 2 months.
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