The shares of HCL Infosystems have surged after the company announced that it has bagged orders worth Rs 2,200 crore from the Unique Identification Authority of India. On Friday’s trading, the companies share surged by almost 13 percent.
HCL Infosystems has beaten TCS to win the 2,200-crore contract from the Unique ID Authority of India. According to government sources, TCS bid about 6,500 crore for the contract while Mahindra Satyam backed out from bidding in the final round. The bids were opened late afternoon on Thursday, at just an hour’s notice to vendors.
The entire end-to-end technology infrastructure of UIDAI will be managed by the MSP once the contract is formally awarded. An executive of HCL Infosystems along with two others from a rival firm, who also participated in the bid, confirmed that the company had emerged as the lowest bidder. A UIDAI official confirmed that the bids were opened on Thursday but didn’t give details.
IT vendors had been complaining, as almost eight months had passed since bids in May 2011. The delay, according to UIDAI, was due to the non approval of required funds by the finance ministry. Some IT vendors were asking UIDAI to scrap the tender as imports had gone up 15% due to fall in rupee against the dollar and there was newer cheaper inventory available in the market.
The UIDAI contract, for which the tendering process had begun in 2010, was one of the most- awaited contracts in the domestic information technology space. The deal, if finally clinched by HCL, will significantly shore up the company’s revenue, the performance of which has not been very strong in recent quarters.