Why HCL Tech's Share Price Is Up Today

Shares of HCL Tech were up on Wednesday after the IT firm inked a multimillion-dollar contract with a large German bank.

What Happened: IT services firm HCL Tech announced a seven-and-half-year $278 million (₹2,322 crore) contract with Deutsche Apotheker- und Ärztebank eG (apoBank), a cooperative primary bank in Germany.

HCL Tech will implement an outcome-oriented managed services model to enhance apoBank’s ability to provide fast and secure banking services to its customers.

Thomas Runge, chief operating officer and member of the executive board at apoBank, expressed enthusiasm for the expanded partnership with HCL Tech. He highlighted HCL Tech’s world-class capabilities in IT infrastructure, cloud-managed services, extensive expertise in Avaloq systems and deep understanding of apoBank, making the firm an ideal partner.

See Also: L&T’s SN Subrahmanyan Sees Salary Jump 43% In FY24

Sudip Lahiri, executive vice president and head of financial services, Europe at HCL Tech, noted that apoBank became a client in 2021 through an application services partnership. The new contract significantly expands their relationship.

HCL Tech is a strategic partner of Avaloq, a provider of banking technology and services, with strong expertise in the latter’s core banking system. In 2022, HCL Tech acquired Confinale, a Swiss digital banking and wealth management consulting specialist and Avaloq implementation partner.

Price Action: HCL Tech’s share price was up 1.4% at ₹1,448.75 near the start of trade on Wednesday.

Read Next: Kangana Ranaut Slams ‘Western Brainwashing:’ Indians Can’t Afford To Be ‘Bored And Lazy’ Until We Become Developed Country