Tata Technologies shares jump over 6% on tie-up with BMW Group
Tata Technologies shares rose over 6% post joint venture with BMW to develop automotive software hubs. Warren Harris, CEO and MD, highlights commitment to digital engineering solutions for BMW, propelling digital transformation.
Shares of jumped over 6% on Tuesday following a joint venture agreement with the Group to establish an automotive software and IT development hub in Pune, Bengaluru and Chennai.The stock hit the day's high of Rs 1,118 on the NSE in the intraday trade amid significant volumes. Nearly 17 lakh shares were trading on the NSE around 11 am, with total traded value at Rs 179.23 crore. On the NSE, the spurt in volume was 2.84 times.
While the execution of the JV will be subject to regulatory approvals, the move is aimed at leveraging Tata Technologies' digital engineering expertise and talent pool in India to contribute to the BMW Group’s strategic expansion of software coding capabilities across global IT hubs and 24/7 operations, the exchange filing said. The JV will focus on strategic software development, including solutions for software-defined vehicles (SDV), the filing said further.
Also Read:
Commenting on the collaboration, Warren Harris, CEO and MD of Tata Technologies, said, “Our collaboration with the BMW Group demonstrates our commitment to providing top-tier solutions in automotive software and digital engineering to customers across the world. We’re excited to bring our expertise to the forefront, aiding BMW Group in engineering premium products, delivering great digital experiences for their customers and propelling its digital transformation journey in Business IT”.
Tata Technologies shares have been laggards in 2024, witnessing a near 6% erosion in price. The stock was listed on the exchange on November 30, 2023, beating all estimates in the grey market. shares were debuted at 140% premium. On the day of listing the stock scaled a peak of Rs 1,400 against the issue price of Rs 500.
The Rs 3,042-cr IPO of Tata Technologies had received bids worth over Rs 1.5 lakh crore. The overall subscription was nearly 70 times the shares on offer.
The company announced its first quarterly earnings in January since its listing, wherein it reported a consolidated net profit of Rs 170 crore for the quarter ended December 2023. The profit rose by 15% from Rs 148 crore reported in the previous year period. Revenue from operations in the third quarter increased 15% year-on-year (YoY) to Rs 1,289 crore, compared with Rs 1,124 crore in the corresponding quarter of last year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
