Smallcap IT stock trades in green amid market volatility as company receives LoI from government
The stock rose over 3 per cent to Rs 23.67 after the company received a Letter of Intent from DoT for a Unified License (VNO) ISP Category A, enabling it to provide internet services across India after regulatory approvals.
Shares of smallcap IT firm Blue Cloud Softech Solutions Ltd (BCSSL) gained more than 3 per cent after the company announced two key developments for investors. Post this, the stock opened in green at Rs 23.23 against the previous close of Rs 22.96 on the BSE. Later, it touched a high of Rs 24.45. At last check, the stock was trading at Rs 23.80 on the BSE Ltd, up 3.66 per cent or Rs 0.84. The market cap of the company stood at Rs 1,792.33 crore. The stock has a 52-week high of Rs 38 and a 52-week low of Rs 14.95.
LoI from DoT for Unified License (VNO)
In its latest exchange filing, BCSSL said it has received a Letter of Intent (LoI) from the Department of Telecommunications (DoT), Government of India, for a Unified License (Virtual Network Operator) – ISP Category ‘A’ to provide services nationwide.
The company described the development as a significant step in its strategy to build a next-generation digital and data centre-based infrastructure platform across the country.
BCSSL stated that upon fulfilling all regulatory requirements, including depositing entry fees, submitting bank guarantees and signing licence agreements, it will be authorised to provide internet services across India.
According to the filing, the licence will enable the company to offer high-speed and secure internet connectivity to enterprises, government institutions and remote areas nationwide. Combined with its AI-based data centre and sovereign cloud, this will create an integrated digital platform aimed at promoting cloud adoption, cybersecurity and digital transformation.
Building an integrated digital ecosystem
The company said it is developing a digital ecosystem by integrating network connectivity, data centres and cloud infrastructure to provide secure, fast and scalable data access. This framework is intended to help businesses seamlessly manage their IT requirements.
The system will also enhance remote office connectivity, workload management and business continuity. The licence is expected to strengthen BCSSL’s position in the AI, cloud and digital infrastructure segments, enabling it to deliver end-to-end digital solutions to government and private sector clients.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)