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Infosys shares rise 2% after firm signs long-term contract with Daimler AG

At 12.25 p.m. the stock jumped to Rs 1,244.05, up by 1.91 per cent on the BSE. During the early trade, the shares soared over 2 per cent to its record high of Rs 1,249.

SNS | New Delhi |

Share price of Infosys jumped 2 per cent during intra-day trade on Wednesday after the company announced that it has formed a long-term partnership with Daimler AG for a technology-driven IT infrastructure transformation.

At 12.25 p.m. the stock jumped to Rs 1,244.05, up by 1.91 per cent on the BSE. During the early trade, the shares soared over 2 per cent to its record high of Rs 1,249.

At the NSE, it gained 1.97 per cent to Rs 1,244.50. The shares earlier hit its all-time high of Rs 1,248.45.

Overall bullish sentiment in IT counters also helped the stock to gain ground.

After the receipt of all regulatory approvals, Daimler AG will transform its IT operating model and infrastructure landscape across workplace services, service desk, data center, networks and SAP Basis together with Infosys, a statement said.

“As a part of this partnership, automotive IT infrastructure experts based out of Germany, wider Europe, the US and the APAC region will transition from Daimler AG to Infosys,” it added. The companies, however, did not disclose the number of people who will transition as part of the deal.

“Infosys is well placed to realise this transition as an expert having integrated more than 16,000 employees through other partnerships in recent years with a high acceptance, retention and satisfaction rate,” it said.

The transfer will also enable Infosys to bolster and grow its automotive business, while offering Daimler employees strong prospects for long-term career growth and development, the statement added.