Shares of Blue Cloud Softech Solutions snapped their recent losing streak and hit the upper circuit of 5% on Tuesday, outperforming the broader market after the company said it has been empanelled by Bharat Sanchar Nigam Limited (BSNL) as a Captive Non-Public Network (CNPN) Provider.
The stock rose 4.58% to Rs 19.88 despite weakness in the broader market.
In a stock exchange filing on Monday, the company had said it has signed a formal agreement with BSNL under which it will collaborate in planning, designing, deploying, commissioning and maintaining captive private network solutions for enterprise customers across India. The agreement is valid for 60 months.
The empanelment enables Blue Cloud Softech to participate in enterprise CNPN projects in association with BSNL. However, the company clarified that the empanelment does not guarantee any specific business or revenue, with the financial impact dependent on projects secured.
Captive Non-Public Networks are designed to provide secure, dedicated communication networks for enterprises and are expected to support applications such as Industry 4.0, smart manufacturing, logistics automation, mission-critical communications and digital enterprise solutions.
Commenting on the development, the company said, "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."
Blue Cloud Softech said the empanelment strengthens its presence in the telecom and enterprise technology ecosystem, creates opportunities in private 4G/5G and enterprise networking, and expands its addressable market across sectors including manufacturing, logistics, healthcare, utilities, mining and smart campuses.
The company added that the development builds on its Department of Telecommunications (DoT) Unified Licence (VNO) and supports its long-term strategy of providing enterprise connectivity and AI-enabled digital transformation solutions.