HCL Infosystems shares surge 19% on talks to sell Apple products

HCL Infosystems' market valuation went up by Rs 196.78 crore to Rs 1,242.78 crore

Shares of HCL Infosystems on Tuesday soared nearly 19 per cent after the company said it is in discussion with tech giant Apple to distribute the US-based company's products in India.

The stock zoomed 18.74 per cent to settle at Rs 55.75 on BSE. During the day, it jumped 19.91 per cent to Rs 56.30.

On NSE, shares of the company advanced by 18.63 per cent to close at Rs 55.70.

The company's market valuation went up by Rs 196.78 crore to Rs 1,242.78 crore.

On the volume front, 62.68 lakh shares of the company were traded on BSE and over 2 crore shares changed hands on NSE during the day.

In a regulatory filing, HCL Infosystems said it signed a non-disclosure agreement with Apple India on December 23, 2016 and expressed interest in taking up distribution of Apple products in India.

Apple had released a RFP (Request For Proposal) on January 16, and HCL Infosystems participated in the RFP on February 9, it added.

The Indian firm, however, noted that commercial discussions, including the terms of engagement, are yet to commence.

"A definitive agreement for distributorship will be executed only upon conclusion of the negotiations and subject to our compliance to the terms of engagement," HCL said adding that it will communicate it to shareholders and the bourses when that happens.