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NEW DELHI: Shares of Infosys climbed 3 per cent in Wednesday's trade after the IT major signed a large multi-year contract with Vanguard. The deal size, however, was not disclosed.
Following the development, the stock rose 3.42 per cent to hit a high of Rs 810 on BSE.
Through the partnership, Infosys will assume day-to-day operations supporting Vanguard’s DC recordkeeping business, including software platforms, administration, and associated processes, the IT firm said.
"Infosys has deep expertise serving leading retirement services firms in the US and, as part of this strategic partnership with Vanguard, we look forward to transforming the retirement industry while helping clients manage their retirement needs leveraging advanced digital solutions,” CEO Salil Parekh said.
Vanguard is also an investor in Infosys. As per June quarter public shareholding data, two of its funds Vanguard Total International Stock Index Fund (1.27 per cent) and Vanguard Emerging Markets Stock Index Fund (1.20 per cent) owned 2.47 per cent stake in Infosys.
The deal was announced, a day before the IT firm's quarterly earnings on Wednesday. The bengaluru-based firm is likely to report a 5-10 per cent year-on-year (YoY) growth in the June quarter on a 5-6 per cent rise in sales. Analysts expect margins to come in at 21 per cent. Similar to the March quarter, they do not expect the second largest IT firm by revenues to offer any guidance for FY21.
Following the development, the stock rose 3.42 per cent to hit a high of Rs 810 on BSE.
Through the partnership, Infosys will assume day-to-day operations supporting Vanguard’s DC recordkeeping business, including software platforms, administration, and associated processes, the IT firm said.
"Infosys has deep expertise serving leading retirement services firms in the US and, as part of this strategic partnership with Vanguard, we look forward to transforming the retirement industry while helping clients manage their retirement needs leveraging advanced digital solutions,” CEO Salil Parekh said.
Vanguard is also an investor in Infosys. As per June quarter public shareholding data, two of its funds Vanguard Total International Stock Index Fund (1.27 per cent) and Vanguard Emerging Markets Stock Index Fund (1.20 per cent) owned 2.47 per cent stake in Infosys.
The deal was announced, a day before the IT firm's quarterly earnings on Wednesday. The bengaluru-based firm is likely to report a 5-10 per cent year-on-year (YoY) growth in the June quarter on a 5-6 per cent rise in sales. Analysts expect margins to come in at 21 per cent. Similar to the March quarter, they do not expect the second largest IT firm by revenues to offer any guidance for FY21.