IT Stock Jumps 10% After Receiving LoI from Manappuram Finance for AI-Powered Surveillance

Synopsis: IT stock surged 10% after its subsidiary IVIS received a non-binding LOI from Manappuram Finance to deploy AI-powered e-surveillance across 1,000+ branches, strengthening its presence in the BFSI security solutions market.

The shares of this company which provide IT services in software development, consulting and human resource business solutions are in the spotlight after it rose by 10 per cent in today’s market session following receiving an LOI from Manappuram Finance Ltd.

With a market capitalisation of Rs. 1,778 cr, the shares of Magellanic Cloud Ltd were trading at Rs. 30.26 per share, increasing 10% in today’s market session, making a high of Rs. 31.40, up from its previous close of Rs.  28.41 per share. 

What’s the news 

Magellanic Cloud Ltd has announced that its wholly owned subsidiary, IVIS International Private Ltd, has received a Letter of Intent (LOI) from Manappuram Finance Ltd, one of India’s leading gold loan companies. The proposed engagement is aimed at providing outsourced Command & Control Centre (CCC) e-surveillance services, strengthening the security infrastructure across Manappuram’s branch network.

Under the proposed partnership, IVIS will deploy a comprehensive AI-powered security and surveillance solution across more than 1,000 branches in a phased manner. The project will include the supply, installation, commissioning, centralised monitoring, and maintenance of advanced surveillance systems, subject to the execution of definitive agreements and the issuance of purchase orders.

The solution will leverage IVIS’ proprietary AI-enabled Command & Control Centre platform to provide intelligent surveillance, real-time event monitoring, automated alert management, rapid escalation protocols, and specialised monitoring of vault operations. These capabilities are designed to enhance security, improve operational visibility, and safeguard high-value assets within the financial institution’s branch network.

The proposed engagement also marks a significant milestone for Magellanic Cloud’s expansion in the Banking, Financial Services, and Insurance (BFSI) sector. By securing this opportunity with one of India’s premier gold loan institutions, the company strengthens its position as a provider of enterprise-grade AI-driven security solutions while reinforcing growing industry confidence in its technology offerings.

The company clarified that the Letter of Intent is currently non-binding, and the final project scope, commercial terms, implementation timeline, and contract value will be finalised only after signing definitive agreements and receiving formal purchase orders. Magellanic Cloud stated that it will continue to update shareholders and stock exchanges regarding any material developments in accordance with regulatory requirements.

Magellanic Cloud Ltd engages in software development, digital transformation, and advanced technology solutions including AI-driven e-surveillance, drone manufacturing, and IT consulting. Through its subsidiary IVIS International, the company delivers leading-edge, automated security solutions designed for complex enterprise networks and the BFSI sector. 

On the financial front, it reported a healthy performance in Q4FY26. Revenue increased 31% YoY to Rs. 206 crore from Rs. 156 crore in Q4FY25, while EBITDA rose 16% YoY to Rs. 52.5 crore from Rs. 45.2 crore. Net profit grew 34% YoY to Rs. 30.3 crore compared to Rs. 22.6 crore in the year-ago period, with EPS increasing 32% to Rs. 0.50 from Rs. 0.38.

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