HCL Tech Shares Rise After Inking $2.1 Billion Deal With Verizon Business
Verizon will lead sales, solutioning, and customer acquisitions, while HCL Tech will lead post-sales implementations and support.
Shares of HCL Technologies Ltd. gained on Friday after it signed a mega deal with Verizon Business for a contract value of $2.1 billion for a six-year term.
HCL Tech is to be Verizon Business's primary collaborator in all deployments involving managed network services globally for enterprise customers.
Verizon Business will be leading sales, solutioning, and customer acquisitions, while HCL Tech will lead post-sales implementations and ongoing support.
The company expects this deal to have a positive impact on its revenue over the coming six years, beginning in November this year, HCL Tech said in an exchange filing.
Shares of HCL Tech rose 3.54% to Rs 1,174.45 apiece as of 9:43 a.m., compared to a 0.34% decline in the benchmark Nifty 50.
The total traded volume so far in the day stood at 6.2 times its 30-day average. The relative strength index is at 60.87, implying that the stock is neither overbought nor oversold.
Of the 44 analysts tracking the company, 24 maintain a buy, 14 recommend a 'hold', and six suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.8%.
