HCL Tech slips ~2% as UK arm to pare full stake to State Street JV

5 Dec 2023 , 10:33 AM

HCL Technologies’ shares slipped about 2% to Rs 1,308 a share on December 5 after its UK arm announced plans to sell its full 49% stake in the US-based State Street joint venture (JV).

HCL Tech Investments UK, a step-down wholly-owned subsidiary of HCL Tech, inked an agreement with its joint venture partner State Street International Holdings to sell the whole 49% ownership in the JV to State Street for $170 million plus net book value.

The said agreement will become effective from Q1FY25.

Bringing the skills and expertise of State Street HCL Services in-house would result in a more simpler approach that will allow for speedier decision making and a more effective and efficient experience for its clients,’ HCL Tech stated in an exchange filing on December 4, 2023.

At around 10.30 AM, HCL Tech was trading 1.78% lower at Rs 1,314.10 per piece, against the previous close of Rs 1,337.95 on NSE. 

HCL Tech Investments UK, the step-down wholly-owned subsidiary of HCL Tech signed a memorandum of understanding (MoU) with its joint venture partner State Street International Holdings for selling entire 49% stake in the JV to State Street for $170 million plus net book value.

State Street Corporation is a financial services provider to institutional clients situated in the United States that offers investment servicing, investment management, and investment research and trading.

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