Small-cap stock Blue Cloud Softech Solution fell as much as 9.42% to ₹16.51 apiece on BSE despite the company announcing its empanelment by Bharat Sanchar Nigam Ltd (BSNL) as a Category III Captive Non-Public Network (CNPN) provider.
Blue Cloud Softech Solutions share price opened at ₹20.10 apiece today, as compared to previous close of ₹21.03 on Thursday last week.
What’s driving Blue Cloud Softech share price today?
In a regulatory filing, the company said it has signed a formal agreement with BSNL, allowing the two to collaborate on the planning, design, deployment, commissioning and maintenance of captive private network solutions for enterprise customers across India. The agreement will remain valid for 60 months, subject to its terms and conditions.
The empanelment enables Blue Cloud Softech to participate in enterprise CNPN projects alongside BSNL. However, the company clarified that the empanelment does not assure any specific business or revenue, with the financial impact dependent on the projects it is able to secure.
Captive Non-Public Networks are gaining traction as a key enabler of India’s digital transformation, providing enterprises with secure and dedicated communication networks for use cases such as Industry 4.0, smart manufacturing, logistics automation, mission-critical communications and other digital enterprise applications.
Through this empanelment, Blue Cloud Softech will be eligible to partner with BSNL on enterprise CNPN projects across the telecom operator’s areas of operation, strengthening its presence in the private enterprise networking segment.
“We are pleased to be empaneled by BSNL as a Captive Non-Public Network Provider. This reflects our technological capabilities and our commitment to supporting India’s digital infrastructure. We look forward to working with BSNL and enterprise customers to deploy secure, scalable, reliable and next-generation private network solutions that drive operational efficiency and digital transformation,” company’s management said in the filing.
Blue Cloud Softech Solutions share price trend
The small-cap multibagger stock has remained volatile amid weak market sentiments. Blue Cloud Softech Solutions share price has fallen 12% in a week and 1.30% in a month.
Furthermore, the small-cap stock has descended over 10% on year-to-date (YTD) basis and 39.54% in a year.
Looking at the broader level, the stock continued its downward trajectory by falling 82% in two years and 41% in three years. However, the small-cap stock has delivered multibagger returns of 330% in the last five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
