Monday, July 15, 2024

Small-cap IT stock Dev IT surges to upper circuit after receiving all-cash tender offer from US company below ₹150

Stock Market Buzz: Dev IT Shares Hit Upper Circuit as US-Based Company Makes Cash Offer

Dev Information Technology (Dev IT) stocks have been on a winning streak, doubling shareholders’ money in the last year. While larger IT companies have struggled to provide any return to their investors, Dev IT has managed to outperform with a robust performance. Today, the small-cap IT stock hit a 5 percent upper circuit within minutes of the stock market’s opening bell, showing that there might still be more room for growth.

The surge in Dev IT share price comes after the company announced an all-cash offer from LT-1 Inc, a US-based company. The offer includes the acquisition of up to 71,82,480 fully paid-up equity shares, representing 25.78 percent of the company’s public shareholding. The offer is priced at ₹134.50 per share, totaling ₹96,60,43,560 if fully accepted.

In response to the offer, Dev IT’s Board approved the execution of a share purchase agreement with the promoters and the acquirer. The promoters have agreed to sell 86,98,885 shares to the acquirer and approved the allotment of equity shares through a preferential issue. This move is subject to approval from shareholders.

Apart from the recent developments, Dev IT is known for its dividend-paying stocks, with the Board of Directors recommending a 5 percent final dividend to eligible shareholders. The company has a track record of consecutively providing dividends over the past four years.

Additionally, Dev IT recently secured a significant order from Gujarat Informatics Limited for a Relational Database Management System Software platform. The order, valued at approximately ₹34 crore, is set to be executed within two months.

Overall, the future looks promising for Dev IT as it continues to attract investor interest and potential growth opportunities in the IT sector. Investors and market watchers will be keeping a close eye on the company’s performance in the coming days.

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