Monday, June 10News That Matters

Mutual Funds buys stake in 8KMiles Software


8K Miles Software is  the country’s only listed pure-play cloud computing firm. The company is founded by serial entrepreneur Suresh Venkatachari.

It has clients like  Amazon, IBM, CA Technologies, Visa, AirAsia, among others.

In August 2014,  DSP Black Rock Mutual Fund had picked 4 %  in 8KMiles for about Rs 6 crore from the secondary market at a price of Rs 175 apiece. According to BSE data, DSP Black Rock MF had picked up close to 3 lakh shares of 8KMiles Software,

Now, In Sep 2014,  Sundaram BNP Paribas MF bought about 2 % at  double the price that the DSP had paid. The deal was carried out through secondary market operations through the BSE @ Rs 331.95 per share ( 175000 shares)

 8KMiles has been one of be biggest gainers in the recent market rally gaining over six-fold in the past one year alone.

While on September 16, 2103, the 8Kmiles shares were trading at Rs 71.35, today it closed at Rs 353.85 on the BSE. Since the market rally that began with the formation of a new government at the Centre, the 8Kmiles counter nearly doubled from Rs 184.2 to Rs 353.85.

Last month, the company founder and chief executive Venkatachari had told PTI it was planning to extend its success in offering cloud solutions to the largest Asian low-cost carrier Air Asia to other low-cost airlines. Though registered in Chennai and listed on the BSE, 8KMiles draws over 75 per cent of its revenue from the US and only 10-15 per cent from the home market, Venkatachari said, adding the company wanted to increase this to around 25 per cent from here through deals with airlines. Venkatachari said airlines can save between 25 and 30 per cent of their IT budget if they moved to cloud platform.

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