Shares of Kfin Technologies surged up sharply as the company announced bagging a new contract from LIC.

What Happened: KFintech Technologies Limited, in a press release on Thursday morning said that it has bagged a high-value investment management solution (IMS) contract from LIC Pension Fund Limited (LICPFL).

As per the press release, the exclusive deal will have KFintech leveraging its expertise to design and manage an IMS for LICPFL, one of India’s leading pension fund managers. The solution aims to augment customer service, fortify security, and ensure regulatory compliance.

See Also: Why Wipro Shares Dropped To 3-Month Low After Q2 Results

The shares saw a sharp 4% bump as soon as the release came out at around 11:15 p.m. today. However, the company had informed the exchanges about the deal late on Wednesday. Before the surge today, the stock was trading lower after Citi initiated coverage with a “sell” rating and a price target of ₹435.

The contract follows an extensive Request for Proposal (RFP) process initiated by LICPFL in 2023, seeking a comprehensive IMS solution. The sought-after solution encompassed various aspects, from hardware and applications design and delivery to managed services and data centre services.

As per the company, its ‘mPower’ platform has established itself as a crucial element within India’s pension fund landscape, catering to approximately 70% of the Assets Under Management (AUM) for various pension funds.

Price Action: Kfin shares simmered down after an initial surge to trade at ₹457.55 in the early hours of trading on Thursday.

Read Next: Bajaj Auto Shares Race Up 4% After Q2-Print: Here’s Why