Shares of Avance Technologies Limited, a penny stock trading below ₹5, locked at the 5% upper circuit during Thursday's trading session. This sharp rally was triggered by the company's strategic announcement to acquire a full stake in an artificial intelligence firm, marking its entry into the high-growth AI sector.
The Deal That Sparked the Rally
In a filing to the stock exchanges, Avance Technologies revealed it has signed a non-binding term sheet to acquire up to 100% equity stake in Pushpak AI. The target company is a Hyderabad-based platform specializing in Computer Vision and Edge AI analytics. This proposed acquisition is a clear move by Avance to establish a foothold in the visual intelligence and edge computing space, which is witnessing rapid adoption across multiple industries.
Pushpak AI, originally incubated at T-Hub in Hyderabad, has developed technology that converts visual data into actionable insights. Its platform analyses camera feeds, videos, images, and documents directly at the source (the "edge"), providing low-latency intelligence and real-time alerts. This capability is crucial for sectors like manufacturing, smart cities, retail, and logistics.
Strategic Vision and Market Potential
Latesh Poojary, Managing Director of Avance Technologies Limited, stated that the acquisition aligns with the company's strategy of building ownership in scalable, intellectual property-led technology platforms. "Full ownership enables us to drive deeper integration, accelerate go-to-market execution, and unlock long-term value from the rapidly expanding AI and computer vision ecosystem," Poojary explained.
The move positions Avance Technologies directly in the path of the global artificial intelligence market, which is estimated to reach a staggering $2.4 trillion by the year 2032. Through this deal, Avance gains not only Pushpak AI's technology but also its established enterprise client portfolio.
The AI firm counts several prominent Indian corporations as clients, including:
- Automotive giants: Maruti Suzuki, TVS Motor Company, and Hero.
- Infrastructure major: Larsen & Toubro.
- Conglomerate: Adani Group.
- Other leaders: CMS Info Systems, IndiCold, Envoys, Everest Fleet, and Smart City Bhubaneswar.
Avance Technologies Share Price: A Multibagger Journey
The stock opened at ₹1.90 on Thursday, slightly below its previous close of ₹1.91, before quickly rising to hit the day's high and upper circuit limit of ₹2. This surge adds to an already impressive performance history for this penny stock.
Avance Technologies has delivered exceptional returns to its investors:
- A gain of 110.53% in just one month.
- A return of 127% over the last six months.
- An astonishing 3,900% return over the past five years, effectively multiplying investor money more than forty times.
The stock, listed exclusively on the BSE, reached its 52-week high of ₹3.15 on September 9, 2025. Its 52-week low of ₹0.52 was recorded on April 1, 2025. The company's foray into AI through the Pushpak AI acquisition is seen as a strategic step to fuel its next phase of growth, leveraging a market with trillion-dollar potential.
