Small-cap IT stock under ₹50 jumps 15%; surges 30% in 3 straight sessions. Do you own?

A small-cap IT stock under ₹50 jumped over 15 per cent in intraday trade on the BSE on Thursday, November 6, extending gains to the third consecutive session, clocking a cumulative gain of 30 per cent, defying weak market sentiment. Blue Cloud Softech Solutions share price opened at ₹34.82 against its previous close of ₹32.95 and surged 15.3 per cent to an intraday high of ₹38. However, the small-cap IT stock pared gains, as around 12:30 pm, it traded 6.2 per cent higher at ₹35.

The stock is witnessing healthy traction after it announced 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, in an exchange filing on November 4, said that the agreement includes a five-year strategic investment plan, covering technology integration, product development, and manufacturing setup in India, along with revenue sharing to the Israeli technology partner for hardware design transfer and intellectual property rights.

"This collaboration serves as a significant step toward strengthening India’s indigenous semiconductor manufacturing capability and aligns directly with the Government of India’s Aatma Nirbhar Bharat vision," said Blue Cloud Softech Solutions.

"Blue Cloud Softech Solutions is presently in advanced discussions with leading Indian semiconductor manufacturing companies to fabricate these chips domestically, ensuring large-scale, end-to-end local production," said the company.

"The initiative will not only fulfil the company’s existing $15 million collaboration with Byte Eclipse for Edge AI chip integration in the oil and gas sector but also address several similar industrial projects currently in the pipeline across defence, energy, and industrial AIoT domains," Blue Cloud Softech Solutions said.

Blue Cloud Softech Solutions share price trend

Year-to-date, Blue Cloud Softech share price has declined about 29 per cent, while over the last year, it has fallen more than 50 per cent.

However, on a monthly scale, it has gained 20 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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