Sonata Software shares soar to 52-week high amid bonus issue proposal and major partnership

The headline indices have registered a persistent decline of almost 1% over the past five trading sessions, mirroring the prevailing global market weakness. This downturn is clearly evident within various sectors, as a majority of sectoral indices have recorded considerable losses. The FMCG, oil & gas, and metal sectors have borne the brunt of the damage.

Sonata Software Ltd, a software and consulting company, witnessed a remarkable fourfold surge in its trading volume, driving its shares to a new 52-week high of Rs 1,156 per share on the BSE. This surge in investor activity may be attributed to the presence of multiple growth drivers, sparking renewed optimism in the company’s prospects.

One contributing factor to this surge is the company’s recent announcement that its Board of Directors is scheduled to deliberate on a proposal for the issuance of bonus shares during the upcoming Board Meeting on October 25, 2023. Additionally, the company has disclosed a significant development in the form of a new agreement with Global Cloud Xchange (GCX), a prominent network service provider that facilitates global connectivity for new media providers, telecom carriers, and enterprises.

The company further emphasized that its strategic investments in Cloud, Data, and Generative AI technologies have positioned Sonata as the preferred partner for GCX as they embark on a comprehensive, multi-year initiative to transform GCX’s enterprise operations, systems, and business intelligence systems.

Headquartered in Bengaluru, Sonata Software Ltd boasts a robust global presence, with a significant footprint in key regions including the United States, United Kingdom, Europe, Asia-Pacific (APAC), and Australia and New Zealand (ANZ). Shares of the company have witnessed an impressive surge of more than 92% year-to-date, providing investors with outstanding returns of around 120% over the past one year.

Keep a close eye on this stock for the upcoming trading sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.