Why this micro-cap stock zoomed over 100% in 6 days in weak market? Details

A consortium of Tera Software and ITI has emerged as the lowest bidder for three packages of BharatNet phase-3 project, worth a total of Rs 3,022 crore

Tera Software shares hit a record high of Rs 155.05, as they rallied 10 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes in an otherwise weak market. The stock of the micro-cap company has locked in upper circuit for the third straight day, surging 33 per cent during the period. 

 

In six trading days, the market price of the information technology (ITeS) enabled services company has more than doubled, or zoomed 102 per cent from the level of Rs 76.72 on November 5, 2024.

 

The average trading volumes on the counter jumped three-fold with a combined 2.9 million equity shares changing hands on the NSE and BSE till 01:43 PM. There are pending buy orders for a combined quantum of around 60,000 shares on these exchanges. In comparison, the BSE Sensex was down 0.63 per cent or 499 points at 78,181.

 

Tera Software's share price saw a sharp run-up after the company, as a part of a consortium with ITI, emerged as the lowest bidder (L1) for three packages of BharatNet phase-3 project for a total value of Rs 3,022 crore.

 

"Tera Software has participated in the bids of BharatNet Project for Middle Mile Network - Phase-3 with ITI (PSU) as consortium partner in the states of Himachal Pradesh (Package No.8), West Bengal and Andaman & Nicobar (package No.9), emerged as L1 with a total worth of order value of Rs 3,022 crore," the company said in exchange filing.

 

Tera Software is the only company with a presence in BharatNet projects from Phase I onwards, from the state of Andhra Pradesh, followed by Odisha in Phase II, and now entering the Phase III of BharatNet projects.

 

BSNL had invited tenders for the design, supply, construction, installation, upgradation, operation and maintenance of the middle mile network of BharatNet for 16 packages/circles.  BharatNet Phase-3 Project is envisaged for the development (creation, upgradation, operation and maintenance) of Middle Mile Network of BharatNet on Design Build Operate and Maintain (DBOM) model.

 

BharatNet project is funded through Digital Bharat Nidhi (Universal Service Obligation Fund) (USOF) under the Department of Telecommunications (DoT). The project aims to bridge the 'digital divide' by delivering high-speed broadband connectivity with bandwidth of 100Mbps to all Gram Panchayats (GPs) and villages in India, ensuring equitable access to online services for all, especially those in- rural areas.  The project encompasses connecting all 640,000 villages, blocks, and Gram Panchayats across India with high-speed broadband internet connectivity, the company said.

 

Tera Software, in its FY24 annual report, said that the India government is putting emphasis on digital financial transactions which require broadband service coverage to reach 90 per cent of the population from the current 35 per cent coverage.  To that end, the central government has made budget provision of Rs 8,500 crore for FY 2024- 25 towards the Bharatnet project, aimed at the creation of telecom infrastructure required for providing broadband connectivity to all the Gram Panchayats in the country and facilitating non-discriminatory access to service providers, for provisioning of broadband services in rural areas.  This enhances the business opportunities for the company to build infra and maintenance services, the company added.

 

Tera Software’s journey ahead has been enabled by a focused realignment with new opportunities around AI, SDX, and Cybersecurity.  As emerging technologies reshape the world, Tera Software believes that the future will be defined by a twin-track approach to growth. This involves leveraging new partnerships and alliances, while focusing on upskilling and cross-skilling its talent pool for unlocking new growth avenues.  The company is also working to develop new age and future-proof technology solutions and offerings, it added.