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MindTree inks $70 mn deals, shares jump

MindTree inks $70 mn deals, shares jump
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First Published: Wed, Feb 23 2011. 10 55 AM IST
Updated: Wed, Feb 23 2011. 10 55 AM IST
Mumbai: MindTree Ltd said on Wednesday it has inked two deals worth more than $70 million over the next five years to provide infrastructure management services to overseas clients, sending its shares up more than 10%.
The company said it had signed the deals with a European information and communication technology service provider and a US-based bank.
Ram Mohan, senior vice president, said he expects the two deals to have a combined workforce requirement of 250 to 300 employees.
The company plans to expand its centres in Bangalore and Chennai, anticipating more large deals in the remote infrastructure management area, Mohan said.
Mohan, who also heads infrastructure management and technology support for the firm, however, did not disclose the expenditure earmarked for the expansion.
“We are looking at several prospects at this point of time, both in the US and Europe,” he said, adding he expects MindTree to win more such deals in the next two or three quarters.
Infrastructure management is still a nascent, but a fast growing business for MindTree and is expected to contribute about 7% to 8% to the firm’s total FY11 revenue, he added.
The deal cheered investors after a spate of bad news from the company in the past few months.
Ashok Soota, the company’s chairman and co-founder resigned last month citing personal reasons.
Last year, MindTree unexpectedly rolled back its plans of launching a 3G smartphone based on Google Inc’s Android platform.
The company also went through a phase of restructuring as it converted its handsets and 4G long-term evolution IPR business into providing research and development services to network infrastructure and handset firms.
Shares of the company, which have shed about 24% of their value in the past six months, rallied to rise as much as 10.77% to Rs448.70 in morning trade. They later pared some of their gains to trade up 4.8% at Rs424.50 at 10.40 a.m. in a choppy Mumbai market.
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First Published: Wed, Feb 23 2011. 10 55 AM IST