TCS shares up on agreement with Mitsubishi Corp

Tags: TCS, Companies
Shares of Tata Consultancy Services (TCS) surged in morning trade today after the software services firm signed an agreement with Japanese major Mitsubishi Corporation.

TCS today said it has signed an agreement with Japanese major Mitsubishi Corporation to form a single IT services unit.

The merger, in which TCS will hold 51 per cent stake and Mitsubishi 49 per cent, will create a new IT services company of significant scale in the Japanese market with annual turnover of over USD 600 million.

Reacting to the development, shares of the company opened on a bullish note and jumped as much as 1.10 per cent to touch an early high of Rs 2,242 on the BSE.

Similar movement was seen on the National Stock Exchange as well, where the stock opened at Rs 2,220 and then gained 0.89 per cent to touch an early high of Rs 2,242.90.

Marketmen said the uptrend in the stock was largely a knee jerk reaction to the TCS, Mitsubishi agreement.

"This strategic transaction signifies our serious commitment to the Japan market. TCS will now have the scale, strong local presence and full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market," TCS CEO and Managing Director N Chandrasekaran said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Exchange managements must distinguish between speculation and gambling

    Every bull run in the Indian equity market raises the spectre of excessive speculation.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Roopen Roy

Building smart cities the Indian way

Today more than half of the world’s population lives in ...

Rajgopal Nidamboor

The biology behind cultivated wisdom

We are our habits and our behaviour. We are our ...

Gautam Gupta

Why must innerwear be our best kept secret?

While women’s outerwear rules the marketing roost in India, unfortunately, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture