DEV IT spurts on selling 5.45% stake in DevX

DEV Information Technology (DEV IT) rallied 12.80% to Rs 124.70 after the company said it has sold 5.45% of its equity holding in Dev Accelerator (DevX), a managed co-working space business, at a valuation of Rs 104 crore.

Dev IT co-promoted 'DevX' in the year 2017 as a managed co-working space with 720 seats. As on 30 September 2022, DevX has 8,000 seats running at 79% capacity utilization levels. Since its inception DevX has seen a significant interest of investors to invest and participate in the growth of this business.

"This secondary sale will bring down DEV IT's shareholding in DevX from 41.26% to 35.81%. This will not only help unlock the valuation for shareholders of Dev IT but also help the company invest in new age business like Blockchain, AI, ML amongst others for the growth of its core business," the company said in a statement to the exchanges on Monday (26 December 2022).

Jaimin Shah, co-founder, Dev IT said, "Our secondary sale transaction in DevX shows the tremendous interest from investors in the business. This sale will allow us to not only unlock value for our shareholders but also provide significant cash flows in the company to expand new businesses which we have been investing in namely Block chain, artificial intelligence (AI) machine learning (ML) amongst others. Our company recently acquired a block chain technology company to further its offering in this capability."

Dev IT is technology solutions provider delivering digital transformation, leveraging cloud, automation and data technologies. It reported consolidated net profit of 1.18 crore in Q2 FY23 as compared to net loss of Rs 7 lakh in Q2 FY22. Net sales jumped 61.1% year on year to Rs 25.99 crore in Q2 FY23.

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