Penny Stock Under Rs 40: Micro-Cap IT Company Board Approves Preferential Allotment of 1.5 Crore Warrants to Aeroflex Enterprises

Dev Information Technology Limited plans to raise Rs 68.18 crore by issuing 1.5 crore convertible warrants to Aeroflex Enterprises Limited on a preferential basis. The move aims to strengthen the company’s financial position and support its growth initiatives.

The company has approved the issuance of up to 1.5 crore warrants, each convertible into one equity share, at a price of Rs 45.45 per warrant. The warrants carry a face value of Rs 2 each. Through this preferential allotment to Aeroflex Enterprises, a non-promoter entity, Dev IT intends to raise Rs 68.18 crore. The capital infusion will help enhance working capital, fund expansion projects, and accelerate investments in emerging technologies such as cloud solutions, AI-based enterprise services, Datacenter management, and digital transformation.

Additionally, the funds will support the company in scaling operations globally, forming strategic collaborations, and expanding its presence across government and private sector projects. This step is part of Dev IT’s strategy to build a stronger, innovation-led organization ready to capitalize on opportunities in India’s growing digital and IT infrastructure sector.

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To seek shareholder approval for the proposed fund-raising, the Board has scheduled an Extra-Ordinary General Meeting (EGM) on Tuesday, November 18, 2025, to be held via video conferencing or other audio-visual means.

Dev Information Technology reported its Q1 FY26 results with net sales of Rs 429.85 crore, up from Rs 354.60 crore in Q1 FY25, marking a 21.2 per cent increase. EBITDA for the quarter stood at Rs 40.30 crore, down from Rs 60.59 crore in Q1 FY25, reflecting a 33.5 per cent decline. Net profit decreased to Rs 21.82 crore from Rs 37.18 crore in Q1 FY25, a fall of 41.3 per cent.

About the Company

Founded in 1997, Dev IT has grown from a small-scale software provider to a global IT powerhouse. With a strong foundation in India and offices worldwide, the company offers many services, including cloud solutions, digital transformation, and enterprise applications. Known for its commitment to innovation and quality, Dev IT empowers businesses with cutting-edge technology. Their products, such as Talligence and ByteSIGNER, provide valuable tools for data analysis and document management. By understanding their client's unique needs, Dev IT delivers tailored solutions that drive business growth and success.

The company has a market cap of Rs 215 crore. The stock is trading at its 52-week low of Rs 37.50 per share and has given negative returns of 37 per cent in the last 12 months.

Disclaimer: The article is for informational purposes only and not investment advice.