HCL Technologies’ shares surged over 3 percent in early trade on Tuesday after the IT major announced acquisition of a minority stake in domestic generative AI startup Axonwise Private Limited (Sarvam AI).
HCL Technologies’ shares emerged as the top gainer in both the benchmark indices, Sensex and Nifty 50 in early trade. Shares of IT major HCL Tech gained over 3% to their day’s high of Rs 1,150 on the BSE on Tuesday after the IT services company was the lead investor in a fresh funding round for Sarvam AI.
HCL Tech invested Rs 1,427.25 crore (approximately $150 million) in the domestic generative AI startup Axonwise Private Limited (Sarvam AI). This strategic capital injection secures a 10.46% equity stake in Sarvam AI’s parent company, Axonwise Private Limited. This investment makes this the first sovereign AI investment by an Indian IT services company.
HCL Tech had stated they will acquire 41,421 equity shares in the startup and fund its research and development aimed at training next-generation models for AI, coding and cybersecurity. This capital injection will allow the Indian IT services company to develop specific language models and AI solutions for its global client base, and boost the development of sovereign AI solutions for governments and regulated industries.
HCL Tech had posted modest profit growth in the fourth quarter, with revenue rising and AI-led services gaining traction despite a cautious demand environment. Following the fourth quarter results, the HCL Tech management had said, ““HCL Tech delivered superior revenue growth of 3.9 per cent in constant currency, 10 bps below our guidance and 17.2 per cent operating margin within our guidance, in a year marked by an uncertain demand environment,” said C Vijayakumar, CEO and Managing Director, HCL Tech.” As AI dominates the sentiment and future course of action, the spotlight is on whether services garner enough growth opportunities and profits going forward.
HCL Tech Shares Surge, Top Nifty 50 and Sensex Gainers After Sarvam AI Investment
