Infosys share price surged over 3 per cent after the IT giant signed a major deal with an established client worth around $2 billion for more than 5 years. The agreement will involve digital transformation and artificial intelligence (AI) automation-led development, modernisation, and maintenance services for the client, the company said.
Infosys shares began trading at Rs 1,433.90 per share on the Bombay Stock Exchange (BSE).
The company did not reveal the name of the client. "Infosys has entered into framework agreement with one of its existing strategic clients to provide AI and automation led development, modernisation and maintenance services. The total client target spend over 5 years is estimated at USD 2 billion," the company said in a statement to the exchanges on Monday.
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The company is expected to announce the results for the first quarter ended on 30 June 2023 on 20 July 2023 after market hours.
In May this year, Infosys secured a deal from energy company BP to be their primary partner for end-to-end application services.
On 26 June, the company signed a strategic collaboration with Danske Bank to accelerate the bank’s digital transformation activities with speed and scale. The $454 million contract will be in force for five years with an option to renew for an additional year a maximum of three times.
In addition, Infosys signed a Memorandum of Understanding (MoU) with Skillsoft to redesign education and learning for students from class 6 to lifelong learners in India.
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"We have seen good price volume action in last few days. Next move will depend on results outcome but technically, the support base has now shifted to ₹1350," added Ruchit Jain, Lead Research Analyst at 5paisa.
At 2:50 PM, the stock was trading 3.58 per cent higher at Rs 1,473.25.
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