Infosys shares declined 2 per cent during opening on the NSE on Tuesday. The shares fell after the Indian IT major announced termination of a Memorandum of Understanding (MoU) worth $1.5 billion with an unnamed global firm on December 22 evening. The stocks of Infosys were trading in the green on December 22. It rose 1.75 per cent to close at Rs 1,561. However, after the announcement the stock dipped. At 12.20 am, the stock recouped some of the losses and was trading at Rs 1,545.65, down 1.05 per cent on the BSE on Tuesday.
Infosys on September 14 had announced a deal with a global company to offer enhanced digital experiences alongside modernisation and business operations services leveraging Infosys platforms and AI (Artificial Intelligence) solutions.
Infosys in a stock exchange filing on Saturday said the global company has now elected to terminate the MoU and the parties will not be pursuing the master agreement." Infosys also said the stock market intimation was in continuation to a disclosure made on September 14, 2023, with respect to an MoU with the global company which was subject to parties entering into a master agreement.
On the said date, Infosys informed BSE that it entered into an MoU with the global company to provide enhanced digital experiences, along with modernisation and business operations services, leveraging Infosys platforms and AI solutions.
"The total client target spend over 15 years is estimated at $1.5 billion," it had said. This was subject to parties entering into a Master Agreement, Infosys had added.
The deal loss comes at a time when global uncertainties and macro headwinds have challenged IT and tech companies worldwide. In fact, the UK economy has contracted in the third quarter according to official estimates, and experts have cautioned that Britain could already be at risk of a recession.