Veefin Solutions Share Price Gains After Its Arm Buys 50% Stake In Singapore's Walnut AI

Veefin Solutions Ltd.'s share price rose over 5% on Tuesday after its unit bought a Singapore-based technology firm. The subsidiary Estorifi Solutions Pvt. acquired a 50% stake in the Singapore-based technology firm Walnut AI Pte.

The all-cash deal, valued at approximately $2 million, was finalised on Nov. 5, 2024, according to an exchange filing. Veefin Solutions specialises in financial technology solutions.

Walnut AI, founded in February 2020, operates within the information technology sector, focusing on providing IT services and AI-driven solutions. The company reported a turnover of Singapore $1.17 million for 2023 and has shown steady growth since its inception, with revenue increasing from Singapore $0.1 million in 2021 to an estimated Singapore $1.2 million in 2024.

The acquisition aims to expand Veefin’s reach and revenue generation by tapping into Walnut’s established client base across multiple geographies. The deal also creates opportunities for both companies to combine resources and expertise, fostering synergies in innovation and growth.

The transaction, which does not involve any related party transactions, will not require regulatory approvals and is expected to be completed within 60 days. Post acquisition, Veefin Solutions will hold an equal partnership stake in Walnut, with the potential to leverage the new alliance for further growth in the technology services market.

Veefin Solutions is listed only on BSE SME as of now.

Shares of the company rose as much as 5% to Rs 604.30 apiece as of 1:19 p.m. This compares to a 0.33% decline in the NSE Nifty 50 Index. It has risen 173.50% in the last 12 months and the relative strength index was at 49.