What was the deal with the Israeli company that the shares became rockets, the stock rose by 15 percent in the falling market.

Small Cap Stock: Today we are going to tell you about a small-cap IT stock, which is making waves in the stock market these days. Here we are talking about Blue Cloud Softech Solutions, which registered a gain of about 14 percent during intraday trading on BSE on Tuesday, November 4. At the same time, today its shares are seeing a rise of up to 15 percent. This is the third consecutive day when the company’s shares have gained. After all, what is the reason that investors’ interest in this is increasing?

The reason is a deal worth 150 million dollars

Actually, the company has signed a deal worth $150 million with an Israeli technology company. The impact of this Technology Ownership Transfer (ToT) deal between the two companies is now being seen on the shares. In early trade today, the share of Blue Cloud Softech opened at the level of Rs 34.82, whereas on Wednesday the share had opened at the level of Rs 29.78.

During this period, ignoring the sentiment of weak market, it jumped by 13.6 percent and reached intraday high level of Rs 33.84. On Wednesday, the share had reached the level of Rs 38 on BSE, but later due to profit booking it fell to Rs 31.06. However, investor sentiment regarding this still remains strong.

What will the companies create together?

In an exchange filing on November 4, Blue Cloud Softech Solutions said it has signed a $150 million deal with an Israeli technology company to manufacture edge-AI chips and semiconductors in India. Both the companies have signed Technology Ownership Transfer (ToT) agreement. Its objective is to jointly create edge-AI chip and advanced semiconductor system.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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