Shares of Dynacons Systems and Solutions Limited hit 20% upper circuit on 16 April after the company announced securing a contract worth Rs 233 crore.

In its regulatory filing, the company said that it has received a contract worth Rs 233 crore from the National Bank for Agriculture and Rural Development (NABARD) for upgrading and migrating the core banking solution (CBS) from Finacle 7.0 to Finacle 10.2.25, which operates on the application service provider model.

The contract also involves deploying a comprehensive suite of services that include consultancy, implementation, customisation and ongoing support. The NABARD project also focuses on migration and maintenance, infrastructure and network enhancements, along with core banking solution upgrades.

The scope of the contract includes providing service to 1,391 branches of 38 state cooperative banks across eight states.

The contract is structured on an operating expense basis, which ensures a steady stream of income throughout the duration of the 5-year contract period.

Dynacons Systems and Solutions Limited is based in Mumbai and has branches all over India. The company offers services such as turnkey systems integration of large network and data centre infrastructures, infrastructure design and consulting, and the supply of associated equipment and software.

At 3:30 pm, the shares of Dynacons Systems closed 20% higher at Rs 1,131.95 on NSE.