Small Cap IT Stock Dev Information Technology Bags Rs 8 Cr Order Deal From CMO Office, Gujarat

Following the announcement of a significant order deal from the CMO Office in Gujarat, the shares of the small-cap IT firm Dev Information Technology Ltd (DEVIT) began higher on the BSE on Thursday at Rs 125.90 apiece.
The company said in a regulatory filing that it has secured orders cumulatively worth Rs 8 crore approximately. These work orders are towards providing SQL Server Enterprise & Windows Server for further enabling Gujarat Chief Minister Office's Dashboard Application and various other key software solution applications specific to quite a few other Departments of the Gujarat Government hosted in Gujarat State Data Centre.

"Dev Information Technology Ltd (DEVIT) secured a noteworthy order for providing SQL Server Enterprise & Windows Server for further enabling Gujarat Chief Minister Office's Dashboard Application and various other key software solution applications specific to quite a few other Departments of the Gujarat Government hosted in Gujarat State Data Centre," the company said in a regulatory filing.

The time period by which the order(s)/contract(s) is to be executed- approx. 6 months-2 years.

According to information found on the BSE website, Dev IT notified Indian stock market platforms yesterday of all cash offers from US-based LT-1 Inc. In its meeting on June 16, 2023, the Board approved the finalisation of the share purchase agreement between the US-based LT1, Inc. (the acquirer) and the members of the promoter and promoter group, wherein the former has agreed to sell 86,98,885 shares to the latter. Additionally, the Board approved the preferential issuance of 57,24,907 shares of equity to the latter at an issue price of Rs. 134.50 per share.

Today, shares of Dev Information Technology Ltd gained 2.6 per cent to Rs 126 per share from its previous closing of Rs 119.71 per share. The stock's 52-week high is Rs 174.5 while its 52-week low is Rs 94.10. The share has given 23 percent return to its investors in last 1 month.

Recently, in Q4FY24 results, Dev IT announced a total income of Rs 38.13 crore that stood at Rs 30.97 crore in Q4FY23. This means, the IT company registered over 23 percent YoY rise in total income during Q4FY24, indicating strong revenue growth and the potential for higher dividends in the future.

The company had declared Rs 0.25 per share or 5 percent final dividend in 2023. The IT stock traded ex-dividend on 22nd September 2023 to finalize the list of eligible shareholders for payment of Rs 0.25 per share final dividend. Likewise, the It stock traded ex-dividend on 22nd September 2022 for the payment of Rs 0.50 or 10 percent final dividend.

Dev Information Technology, founded in 1997, offers a variety of IT solutions including cloud services, digital transformation, enterprise applications, managed IT services, and application development. They also have their own AI/ML-powered business intelligence solution and a product for digitally signing documents. The company has partnered with major tech companies like Microsoft, Amazon Web Services, and Adobe.