Tech Mahindra gains on link-up with Premium Credit

India’s fifth largest IT firm, Tech Mahindra  rose 2.1% at Rs 1885 on BSE after the company said it has been chosen by Premium Credit, the No. 1 insurance premium finance company in the UK and Ireland to deliver front and back office application services.

The announcement was made after market hours on Tuesday, 27 May 2014.

The stock had underperformed the market over the past one month till 27 May 2014, The large-cap company has equity capital of Rs 233.57 crore.

Tech Mahindra will offer operational support and maintenance services, as well as development and implementation. It was chosen because of its domain expertise in the insurance and financial services and a strong local footprint, the company said in a statement.

Vikram Nair, Head – Europe (Enterprise), Tech Mahindra said, "We are bringing both development and support capabilities to bear on a complex environment. High volumes of transactions and mission critical, customized legacy systems typify financial technology in lending institutions. These must be effectively integrated with both a consumer front end and business management tools. It's an environment to which we are excited to bring specialist professional expertise to bear. We are working together to develop Premium Credit's financial infrastructure as a connected, flexible business platform that will continue to support the business's growth".

Gopi Chelliah, Chief Operating Officer at Premium Credit said, "Our partnership with Tech Mahindra is integral to the delivery of all aspects of our strategy. Our partnership gives us access to deep systems knowledge, professional resources and decades of financial systems expertise, enabling us to innovate with confidence".

Tech Mahindra provides information technology services and solutions.

The stock opened at Rs 1,856.70, touched a high of Rs 1892.80 and a low of Rs 1851.60 on the BSE.

Over 744,149 shares were traded on both the stock exchanges so far.