Tech Mahindra shares jumped more than 5 per cent on Friday, a day after the company said it had signed a multi-year deal with US-based AT&T. In a regulatory filing after market hours on Thursday, Tech Mahindra said it will expand its strategic collaboration to accelerate AT&T's IT network application, shared systems modernization and movement to the cloud as part of the agreement. On the Bombay Stock Exchange (BSE), Tech Mahindra shares rose as much as 5.56 per cent to Rs 734.00 apiece at the day's strongest level.
"This is a step towards elevating Tech Mahindra's long standing strategic relationship with AT&T to help make the vision of a 5G-enabled future, a reality," said CP Gumani, managing director and CEO, Tech Mahindra.
The Mumbai-based company said the agreement will enable AT&T to focus on core objectives and migrate the majority of its non-network workloads to the public cloud by 2024.
It will assume management of "many of the applications which support AT&T's network and shared systems", said Tech Mahindra, which is a part of the $20.7-billion Mahindra Group.
Tech Mahindra shares traded with large volumes. By noon, 1.93 lakh shares had changed hands on the BSE, as against an average of 80,000 in the past two weeks.
On the National Stock Exchange (NSE), the company's shares surged as much as 5.60 per cent to touch an intraday high of Rs 734.45 apiece.
At 12:04 pm, Tech Mahindra shares traded 3.85 per cent higher at Rs 722.10 apiece on the BSE, outperforming the benchmark Sensex index which was up 0.61 per cent.
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