Tech Mahindra shines on entering into partnership with KPN

Tech Mahindra is currently trading at Rs. 835.65, up by 4.10 points or 0.49% from its previous closing of Rs. 831.55 on the BSE.

The scrip opened at Rs. 834.50 and has touched a high and low of Rs. 846.00 and Rs. 830.85 respectively. So far 43,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 887.70 on 27-Aug-2012 and a 52 week low of Rs. 524.20 on 30-Sep-2011.

Last one week high and low of the scrip stood at Rs. 846.00 and Rs. 782.40 respectively. The current market cap of the company is Rs. 10,658 crore.

The promoters holding in the company stood at 70.78% while Institutions and Non-Institutions held 20.68% and 8.54% respectively.

Tech Mahindra and Royal KPN N.V. (KPN’) has entered into an international partnership in order to further improve KPN's efficiency and effectiveness in its IT environment and operational processes and to jointly address strategic growth areas. KPN expects to make savings of at least EUR 200 million over a 5-year period with the partnership. As part of its 'Strengthen, Simplify and Grow' strategy for the period 2011 - 2015 KPN has set out a clear ambition on cost leadership and acceleration of its FTE reduction program. This new partnership helps to realize both ambitions.

Through this partnership, KPN and Tech Mahindra aim to achieve strengthening of business models, simplifying and enhancing KPN's IT environment and operational processes, growing KPN's and Tech Mahindra's revenues by addressing strategic growth areas by means of combining capabilities and portfolios to create new joint offerings.

As a first step in this partnership, KPN and Tech Mahindra have signed a five-year contract for development and support of over 150 applications in the operational IT systems of KPN NetCo segment. As a second step, KPN and Tech Mahindra will thoroughly explore and determine future projects in the newly set up partnership.