Shares of Tata Technologies jumped as much as 7% in intraday trading today following the company’s announcement of setting up a joint venture with German luxury carmaker BMW.
Autocar Professional exclusively reported the news on Monday, a day before the Pune-based auto component maker announced it. On Monday itself the share gained 2.9%
Tata Technologies’ stock, which opened at Rs 1,040.00 on Monday on the National Stock Exchange when the market opened after three days, rose as much as 3.6% before closing at Rs 1,049.80.
Today, shares rallied further after the official announcement. The stock, which opened at Rs 1,059.50 today, rose as much as Rs 1,127, at around 10:30 IST.
Both companies have signed an agreement to form a joint venture to establish an automotive software and IT development hub in Pune, Bengaluru and Chennai.
The main development and operations activities shall be established in Bengaluru and Pune. In Chennai, the focus shall be on business IT solutions.
Tata Technologies is a unit of Tata Motors that provides engineering and technology services for automobile, heavy industries and aero sectors.
The joint venture will leverage Tata Technologies’ digital engineering expertise and talent pool in India for BMW Group’s strategic expansion of software coding capabilities across global IT hubs. It will focus on strategic software development, including solutions for software-defined vehicles.
Tata Technologies debuted on the National Stock Exchange at Rs 1,200.