TCS inches up after signing definitive pacts with Mitsubishi Corporation

TCS rose 0.57% to Rs 2,230.05 at 9:58 IST on BSE after the company said it has signed definitive agreements with Mitsubishi Corporation, one of Japan's largest integrated business enterprises to merge TCS Japan, ITF and NTSC.

The announcement was made before market hours today, 21 April 2014.

Meanwhile, the S&P BSE Sensex was up 83.21 points or 0.37% at 22,712.05.

On BSE, so far 12,000 shares were traded in the counter as against average daily volume of 1.22 lakh shares in the past one quarter.

The stock hit a high of Rs 2,242 and a low of Rs 2,217.25 so far during the day. The stock had hit a record high of Rs 2,384.20 on 14 January 2014. The stock had hit a 52-week low of Rs 1,364 on 30 April 2013.

 

The stock had underperformed the market over the past one month till 17 April 2014, advancing 3.56% compared with the Sensex's 3.76% rise. The scrip had also underperformed the market in past one quarter, gaining 0.08% as against Sensex's 7.43% rise.

The large-cap company has equity capital of Rs 195.87 crore. Face value per share is Re 1.

TCS will hold 51% in the merged entity, Mitsubishi Corporation (MC) to hold 49%. The merged entities to be operational from July 2014, TCS said in a statement.

Commenting on the transaction N Chandrasekaran, CEO and Managing Director, TCS, said, "This strategic transaction signifies our serious commitment to the Japan market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market. We deeply value the partnership with Mitsubishi Corporation and look forward to leveraging our mutual strengths in the Japan market".

TCS said that the transaction will create a new IT Services company of significant scale in the Japanese market. ITF brings its long standing relationships with Japanese corporations, talented workforce and competencies in industries like retail, distribution and trading. This will complement TCS' deep domain knowledge, technology expertise and strong execution track record. TCS' Global Network Delivery Model (GNDM) capabilities will also enable the Japanese corporations' globalization ambitions. The company will provide tremendous additional value to clients in Japan; while employees will secure the advantages of building their careers in a global organization, TCS said in a statement.

Mitsubishi Corporation (MC) is a global business enterprise that develops and operates business in wide range of industries.

TCS' consolidated net profit rose 2.3% to Rs 5297 crore on 1.2% growth in revenue to Rs 21551 crore in Q4 March 2014 over Q3 December 2013.

TCS is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services.

Powered by Capital Market - Live News