Dynacons Systems shares jump 15% after bagging RBI order worth half its market cap

Shares of Dynacons Systems and Solutions Ltd. surged as much as 15% on Tuesday, May 5, after the company said it has received an order worth ₹750.82 crore from the Reserve Bank of India.

The company informed the exchanges regarding the order on Monday. It said the project involves supply, installation, implementation, integration, maintenance and facilities management services for the Reserve Bank of India's private cloud infrastructure for data centers.

The contract is to be executed in five years, the company said in an exchange filing.

Dynacons Solutions said the RBI is in the process of establishing a new Greenfield Next Generation Data Centre (NGDC) in Bhubaneshwar, Odisha. The central bank is looking at establishing a robust, scalable and secure private cloud to support eh current and future application and analytics workloads, with provision for integration of AI cloud capabilities separately, the company said.

The scope of the project includes provisioning and deploying servers, unified native storage, SAN switches, physical racks and associated software licenses, the company said.

According to Dynacons, it will be responsible for the end-to-end supply, design, installation, implementation, integration with the RBI's existing data center ecosystem, and will also provide ongoing technical support in line with defined service levels. The scope of work also includes maintenance, vulnerability management, upgrades and continuous monitoring of the solution, in accordance with the agreed timelines and service requirements, Dynacons added.

Shares of Dynacons Systems & Solutions are trading 14.3% higher on Tuesday at ₹1,275.2. The stock is also trading at a 52-week high today. The value of the contract is 50% of its overall market capitalization, which is just over ₹1,600 crore after today's surge.

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