Intellect Design Arena Shares Soar 13% After Launching AI Platform ‘Purple Fabric’

Intellect Design Arena share price surged 13% on December 23, reaching an intra-day high of ₹925.55. The rally followed broader market gains and enthusiasm over the launch of its new AI-powered platform, Purple Fabric, designed to revolutionise operations in the financial and insurance sectors.

Introducing Purple Fabric

Unveiled on December 19, Purple Fabric is a cutting-edge Enterprise AI platform built to handle the growing data demands of financial services. Powered by Large Language Models (LLMs) and ‘Thinking Brain’ tools, it simplifies processes like claims settlement and data management. The platform enhances customer experience through efficient data integration and offers user-friendly tools that require minimal technical expertise.

AI-Driven Features and SME Focus

Purple Fabric also includes AI-based document management capabilities and tools for small and  SMEs (medium-sized enterprises). These features aim to help SMEs build and implement AI solutions, broadening Intellect Design’s market reach and making Purple Fabric a potential revenue driver.

Stock Performance Trends

• The stock is now 23% below its 52-week high of ₹1,198.80, hit in March 2024, and 33% above its 52-week low of ₹693.05, recorded in November 2024.
• Year-to-date (YTD), it has gained 11%, with a sharp rise of 28% in December after consecutive losses in the previous three months.

About Intellect Design Arena

Founded in 2011, Intellect Design Arena Limited operates worldwide and specialises in financial technology solutions for banking, insurance, and other financial services. The company offers various products, such as solutions for consumer banking, central banking, risk and treasury management, transaction banking, and insurance. Additionally, it focuses on software development.

Financial Challenges Persist

Despite the excitement around Purple Fabric, Intellect Design Arena’s financial performance remains weak. In Q2 FY2024, its net profit dropped by 25% to ₹52.81 crore, while sales fell nearly 10% to ₹558.13 crore compared to last year’s quarter.

With a promising AI platform and expansion plans, the company’s future performance remains under close watch.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.