Small-cap IT stock Blue Cloud jumps 14% after a $150 million deal with an Israel-based tech firm. Details here

Small-cap IT stock Blue Cloud Softech Solutions surged almost 14 per cent in intraday trade on the BSE on Tuesday, November 4, after the company announced a $150 million technology ownership transfer (ToT) agreement with an Israel-based technology firm. Blue Cloud Softech share price opened at ₹29.78 against its previous close of ₹29.78 and jumped as much as 13.6 per cent to an intraday high of ₹33.84, defying weak market sentiment. Around 11:40 am, the small-cap stock traded 13 per cent higher at ₹33.65. Equity benchmark Sensex was 0.35 per cent down at 83,684 at that time.

Blue Cloud Softech signs a ToT agreement

In an exchange filing on November 4, Blue Cloud Softech Solutions said it had signed a $150 million technology ownership transfer (ToT) agreement with an Israel-based technology firm to develop edge-AI chip hardware design and manufacture semiconductors in India.

"Blue Cloud Softech Solutions has announced the signing of a technology ownership transfer (ToT) agreement, which is potentially valued at approximately $150 million with an Israel-based technology company to co-develop edge-AI chips — advanced semiconductor systems designed to power the next generation of AIoT (artificial intelligence of things) and industrial automation applications," said the company.

"The agreement value of $150 million includes a five-year strategic investment plan by Blue Cloud Softech Solutions, covering technology integration, product development, and manufacturing setup in India, along with revenue sharing to the Israel technology partner for hardware design transfer and intellectual property rights," the company said.

Blue Cloud Softech Solutions share price trend

The small-cap stock has been under pressure this year. Year-to-date, it has declined over 30 per cent, while over the last year, it has suffered losses of more than 50 per cent.

However, it has seen traction in the recent past, as on a monthly scale, it has gained over 15 per cent in November so far after a 6 per cent rise in October.

Blue Cloud Softech Solutions' share price hit a 52-week high of ₹79.95 on November 11 last year and a 52-week low of ₹14.95 on April 17 this year.

The stock underwent a 1:2 stock split on January 20 this year.

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