Varanium Cloud: Small-Cap IT Company Closes Friday's Trading With Market Valuation of ₹830 Cr
Key Highlights :
The small-cap IT company Varanium Cloud closed Friday's trading with a market valuation of ₹830 Cr. The NSE SME stock's initial public offer was initiated in September 2022 at a fixed price band of ₹122 per equity share, and it got listed on the NSE SME market on September 27, 2022, at ₹131 per equity share, indicating a 7% premium. It has set a record date for the 1:1 bonus share and 1:2 stock split, despite being one of the multibagger stocks of 2023. It has also announced dividend for its eligible shareholders.
Varanium Cloud declared its Q4FY23 results in a stock exchange filing, stating that “The Board has recommended dividend at the rate of Rs. 7 per share of face value of Rs. 10/- each on equity shares for the financial year ended March 31, 2023. The dividend payout is subject to the Members’ approval at the forthcoming Annual General Meeting ("AGM") of the Company.” In a separate exchange filing, Varanium Cloud informed stock exchanges that “Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015, we would like to inform you that the Company has fixed Tuesday, 9th May, 2023 as the Record Date, for the purpose of ascertaining the eligibility of the shareholders entitled for the following matters, in accordance with the approval of shareholders obtained on 17th April, 2023: 1. Sub-division of 1 (one) Equity share of face value of Rs. 10/- each fully paid-up to 2 (two) Equity Shares of face value of Rs. 5/- each fully paid-up. 2. Issue of 1 (One) Bonus Shares for every 1 (One) Equity Shares held by the Equity Shareholders of the Company."
During the quarter ended March 2023, the company recorded a net income of Rs 150.32 Cr compared to ₹13.32 Cr during the quarter ended March 2022, whereas in FY23, its net income was ₹383.37 Cr as against ₹35.35 Cr in FY22. During Q4FY23, the company’s net expenses stood at ₹107.95 Cr as compared to ₹20.36 Cr during Q4FY22 and in FY23 its net expenses reached ₹266.19 Cr as against ₹23.40 Cr in FY22. Varanium Cloud said its net profit stood at Rs 29.48 Cr during the quarter under review against a net loss of ₹7.93 stood in the year-ago quarter, whereas in FY23 the company’s net profit reached ₹85.46 Cr as against a PAT of ₹8.40 Cr during FY22.
On Friday, the shares of Varanium Cloud closed on the NSE at an upper circuit limit of ₹826.55 apiece level, up by 5.00% from the previous close of ₹787.20. This indicates the confidence of investors in the company and its future prospects. The company has been able to increase its revenue and profits steadily in the last two years, which is a positive sign.
Investors should keep an eye on the company’s performance in the upcoming quarters. They should also evaluate the company’s dividend payout, stock split, and bonus share plans before investing. It is advisable to consult a financial advisor before investing in the stock.
ABOUT THE AUTHOR
Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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