SpaceX namesake creates confusion on Dalal Street! Indian IT stock skyrockets 23% in 2 days

Weeks after the 'Meloni' mania sparked a skyrocketing rally in the wrong Parle stock, similar confusion over Elon Musk’s SpaceX boosted the shares of a Hyderabad-based smallcap IT firm, Blue Cloud Softech Solutions.

Blue Cloud Softech Solutions on Monday announced that its wholly owned US subsidiary has executed its first Statement of Work with Malaysia-registered SpaceX International. This relates to a Master Services Agreement signed by the parties earlier this year, which provides for a minimum contractual commitment of $150 million over 18 months.

It is important to note that the Malaysia-based SpaceX International has no association with Elon Musk’s rocket-maker SpaceX. However, investors on Dalal Street may have confused the deal to be from the world’s richest man’s company.


Blue Cloud Softech Solutions shares surged 23% in two days, closing at Rs 24 apiece on BSE on Tuesday. This surge followed an unusual spike in trading volume amid the likely confusion. After the sharp run up, the stock dropped over 2% today to trade at around Rs 23.63 apiece.

As part of its agreement with Malaysia’s SpaceX International, Blue Cloud Softech Solutions’ US subsidiary will design, build, integrate, secure, connect and operate a dedicated, sovereign-grade AI compute and data-Centre platform, spanning four sectors, namely AI infrastructure ($70 million), cybersecurity ($25 million), telecommunications ($25 million) and data centre solutions ($30 million). Services will be delivered across five phases over six quarterly billing periods, commencing with assessment and design and culminating in managed operations from the sixth quarter onward, it said.

“This engagement is an important milestone for our AI infrastructure business and reflects Blue Cloud’s ability to design, build and operate integrated AI compute, cybersecurity and data-Centre solutions at scale. We believe this programme strengthens our long-term strategy of building technology infrastructure capabilities for global clients,” said Blue Cloud Softech Solutions Group Chairman Tejesh Kumar Kodali.

Also read | Blue Cloud's US Arm Secures $150 Million AI Infrastructure Deal

The Meloni mania and Parle frenzy

The likely confusion over SpaceX comes months after ‘Meloni’ mania sparked a skyrocketing rally in the wrong Parle stock. During his visit to Italy, PM Narendra Modi gifted a bag of ‘Melody’ candies to his Italian peer Giorgia Meloni. The Italian PM shared a video of their interaction on social media, which went viral, over the gifting of candies that suggest a fun play on both the Prime Ministers’ surnames. In the video, she described it as a “very, very good toffee.”

Mumbai-based Parle Industries is associated with developing infrastructure and real estate projects, along with managing paper waste recycling operations. The company has no connection with its namesake Parle Products, which makes the popular Parle-G biscuits and other products, including the Melody toffee.

Also read |Melody effect: Wrong 'Parle' stock hits 5% upper circuit

Amid confusion over similar names, Parle Industries shares hit the 5% upper circuit for 19 consecutive sessions in May, before sharply beginning to decline.

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