The news of HCL Technologies' strategic relationship extension with Deutsche Apotheker- und Ärztebank eG (apoBank), Germany's largest cooperative primary bank, caused its share price to soar over 3% in early trade on Wednesday. On the BSE, HCL Tech shares increased by as much as 2.95% to ₹1,472 a share.
In a regulatory filing, the business stated that HCL Technologies would work with apoBank to provide an outcome-oriented managed services model that offers robust, scalable, high-quality, and compliance Digital Foundation services, allowing apoBank to provide its clients with quick and secure financial services.
Over the course of 7.5 years, the deal's anticipated total contract value is $278 million, which translates to an annual contract value of $37 million. In 2021, apoBank entered into an application services relationship with HCLTech.
The partnership will grow significantly as a result of the new deal. Sudip Lahiri, Executive Vice President and Head of Financial Services, Europe, HCL Technologies, stated, "We look forward to working with apoBank to help them serve their customers by leveraging our comprehensive portfolio of managed infrastructure and cloud services and our longstanding experience with Avaloq."
In 2021, apoBank entered into an application services relationship with HCLTech.
The partnership will grow significantly as a result of the new deal. Sudip Lahiri, Executive Vice President and Head of Financial Services, Europe, HCL Technologies, stated, "We look forward to working with apoBank to help them serve their customers by leveraging our comprehensive portfolio of managed infrastructure and cloud services and our longstanding experience with Avaloq."
According to media sources, brokerage company Morgan Stanley stated that the transaction represents a substantial extension of an existing customer relationship as well as the ongoing momentum for major deal wins in the financial services sector.
According to a study, HCL Technologies' capacity to meet its full-year revenue projection is bolstered by significant agreements.
Morgan Stanley kept its "Overweight" rating on HCL Tech stock, with a ₹1,650 price objective per share.
HCL Tech shares were up 1.57% at ₹1,452.20 a share on the BSE at 9:30 am.
