Small-cap IT stock Blue Cloud Softech Solutions rose by over 3% in morning trade on the BSE on Friday, November 28, despite cautious market sentiment ahead of the release of Q2 GDP numbers and mixed global cues. Extending gains to the second consecutive session, Blue Cloud Softech share price opened at ₹21.70 against its previous close of ₹21.38 and rose 3.4% to an intraday high of ₹22.10. Around 10:45 am, the small-cap stock was almost 2% up at ₹21.76, while the Sensex was up about 0.20% while the BSE Midcap and Smallcap indices were in the red at that time.
Blue Cloud Softech share price trend
The small-cap IT stock has been under pressure this year, falling 55%. On a monthly scale, the stock is down 26% in November after clocking a gain of 6% in October.
Blue Cloud Softech shares hit their 52-week high of ₹72.88 on December 9 last year, but failed to hold gains and dropped to their 52-week low of ₹14.95 on April 17 this year amid growing concerns over the IT sector’s growth prospects due to demand slowdown and the emergence of AI.
Blue Cloud Softech JV update
Blue Cloud Softech Solutions, on November 25, announced that following the earlier strategic cooperation agreement between the company and Byte Eclipse Technologies Inc., USA, they have entered into a formal joint venture (JV) for the design, manufacture, and global commercialisation of edge-AI microprocessor chipsets, using proprietary intellectual property secured under a technology transfer (ToT) agreement from an Israeli R&D partner.
According to the company’s exchange filing, under this JV, Blue Cloud Softech Solutions will design and manufacture a next-generation edge-AI chip, while Byte Eclipse Technologies Inc. will mobilise its sales network across the US and Europe.
The JV is for an initial term of five years, with geographical exclusivity granted to Byte Eclipse within the defined sectors for the US and European markets.
The partnership is expected to create a business potential in the range of $65 to $80 million over the term of the agreement, covering custom chip sales, licensing, and integration services, said the company.
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