Tech Mahindra rose 1.76% to Rs 2,141 at 9:22 IST on BSE after the company said it has formed a joint venture with Midad Holding to provide IT and ITeS solutions in Saudi Arabia.
The company made the announcement after trading hours on Wednesday, 2 July 2014.
Meanwhile, the BSE Sensex was up 90.36 points, or 0.35%, to 25,931.57.
On BSE, so far 893 shares were traded in the counter, compared with an average volume of 87,386 shares in the past one quarter.
The stock hit a high of Rs 2,180 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 2,105.15 so far during the day. The stock hit a 52-week low of Rs 965.30 on 3 July 2013.
The stock had outperformed the market over the past one month till 2 July 2014, rising 11.13% compared with 4.68% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 14.92% as against Sensex's 14.59% rise.
The large-cap company has an equity capital of Rs 234.39 crore. Face value per share is Rs 10.
Tech Mahindra announced that it has signed a joint venture (JV) agreement with Midad Holding, which is a subsidiary of Al Fozan, a pre-eminent group with diversified business interests in Saudi Arabia. The JV will be called Tech Mahindra Arabia. Tech Mahindra will have 51% ownership while Midad will own 49% stake. Headquartered in Al Khobar Tech Mahindra Arabia will also have presence across other major cities in Saudi and will be functional post the regulatory approvals.
The regional strength of Midad Holding and the global connectivity of Tech Mahindra will create a synergic value proposition for customers in KSA, the company said in a statement.
Tech Mahindra Arabia will provide gamut of Information Technology (IT) and IT-enabled services (ITES) to cater to the established and emerging sectors in KSA. The solutions would aim to provide services in the areas of consulting, application development and management, network services, integration, engineering, managed services, remote infrastructure management, operational & maintenance services and business process outsourcing, the company said.
On consolidated basis, Tech Mahindra's net profit declined 39.17% to Rs 614.21 crore on 3.25% growth in net sales to Rs 5058.11 crore in Q4 March 2014 over Q3 December 2013.
Tech Mahindra offers information technology services and solutions.
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