Shares of small-cap IT company Blue Cloud Softech Solutions jumped as much as 4% on Tuesday, February 24, defying the tepid mood in the Indian stock market as investors cheered the company’s latest acquisition that aims to strengthen its Blue Energy platform.
Blue Cloud Softech Solutions share price hit the day’s high of ₹23.89 on the BSE, up 4.3% as against its last closing price of ₹22.90. However, the stock failed to sustain at such high levels and was trading at ₹22.99 at the time of writing the report.
Blue Cloud Softech Solutions acquisition details
An exchange filing shared by the company stated that Blue Cloud Softech Solutions has received board approval to enter into a definitive agreement framework to acquire 100% of Global Impex Inc. from ConnectM Technology Solutions, a US-based modern energy economy company.
The acquisition aims to develop a scalable, technology-driven Blue Energy platform under Blue Cloud Softech Solutions, offering clean energy solutions for data centres, industrial sectors, mobility, electric vehicles, energy storage, software, and data services to support energy transition needs in India and globally, the company said.
The acquisition will be implemented through an all-equity share swap, with the transaction expected to be completed within 6-9 months, subject to shareholder and regulatory approvals.
Both Blue Cloud Softech Solutions and ConnectM boards have approved proceeding with the transaction framework, the press release stated.
The proposed acquisition is aligned with BCSSL’s long-term portfolio strategy and SPV-based value creation model, the company stated. Global Impex Inc houses ConnectM’s India-focused operating assets and platforms. It also holds exclusive India licenses for select proprietary technologies developed by ConnectM and its wholly owned subsidiary, Keen Labs, which bodes well for the small-cap IT company.
For ConnectM, the transaction enables structural simplification, enhanced focus on US and international markets, and continued participation in India’s growth through equity ownership and technology licensing partnerships, the exchange filing said.
Post-completion, Blue Cloud Softech Solutions intends to consolidate the acquired assets and related technologies into a focused Blue Energy vertical and, where appropriate, special purpose vehicles (SPVs).
This structure is expected to support: Targeted capital raising from infrastructure and climate-tech investors, Expansion of EV, microgrid, storage, and VPP deployments across India and Potential strategic partnerships and international capital market initiatives over the medium to long term.
Blue Cloud Softech Solutions share price trend
Blue Cloud Softech Solutions has emerged as a multibagger stock in the long term. The scrip has jumped 354% in five years and 611% in 10 years.
However, in a year, the small-cap IT stock has tumbled 28%.
Disclaimer: This story is for educational purposes. We advise investors to check with certified experts before making any investment decisions.
