- IT company has informed Indian bourses that it has sold out 5.45 per cent stake worth ₹104 crore
Stock market today: Dev Information shares are among top gainers of Tuesday deals. In early morning session, Dev IT shares opened upside and went on to hit intraday high of ₹133 apiece on NSE, logging around 18 per cent intraday gain within few minutes of stock market’s opening. However, the stock witnessed profit booking soon and the stock is currently trading at around ₹123 per share, near 10 per cent above its Monday close price on NSE. According to stock market experts, this surge in the IT stock is mainly due to the latest exchange filing by the company where it has claimed that it is sold out 5.45 per cent stake worth ₹104 crore. This has sparked buying interest in the company and the stock.
Speaking on the reason for rise in Dev IT share price, Anuj Gupta, Vice President — Research at IIFL Securities said, “Dev IT stocks are rising today because the company has informed Indian bourses that the IT company has sold out 5.45 per cent stake that will enable it to generate ₹104 crore. This money is expected to improve margins and financials of the company and hence Dalal Street bulls are showing buying interest in the IT scrip since early morning deals.”
Anuj Gupta of IIFL Securities went on to add that those who missed to buy the scrip may still have a chance to enter around ₹110 to ₹115 levels for long term target of ₹200.
“Dev IT stocks are showing higher top higher bottom formation on chart pattern indicating further upside after some profit booking trigger. One can accumulate the scrip more for next long term target of ₹200,” said Anuj Gupta of IIFL Securities.
Advising Dev IT shareholders to hold the scrip further, Manoj Dalmia Founder and Director at Proficient Equities said, “The stock may go in range-bound state if the volume in the scrip goes down. So, long term investors are advised to keep stop loss below ₹75 and keep on accumulating on every 8-10 per cent dip. In case, the volume remains maintained, then the stock may become highly bullish after breaching its immediate hurdle placed at ₹145 levels. One can add more once the stock gives breakout at ₹145 apiece levels on closing basis.”
Informing Indian stock market exchanges about the stake sale, Dev Information Technology Ltd said, “Dev Information Technology Limited (DEV IT), Ahmedabad based IT Services & Products company has sold 5.45% of its equity holding in M/s. Dev Accelerator Pvt. Ltd. (DevX), a Managed Co-Working Space business, at a valuation of ₹104 crore.”
Dev IT co-promoted ‘DevX’ in the year 2017 as a managed co-working space with 720 seats. As on 30 September, 2022 DevX has 8,000 seats running at 79% capacity utilization levels. Since its inception DevX has seen a significant interest of investors to invest and participate in the growth of this business.
Speaking on the development, Jaimin Shah, Co-Founder, Dev IT Limited said, “Our secondary sale transaction in DevX shows the tremendous interest from investors in the business. This sale will allow us to not only unlock value for our shareholders but also provide significant cash flows in the company to expand new businesses which we have been investing in namely Block chain, AI-ML amongst others. Our company recently acquired a block chain technology company to further its offering in this capability.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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