HCL Technologies shares in focus as firm buys stake in Sarvam AI for ₹1,427 crore

HCL Technologies shares will be under the spotlight as the IT services company on Monday, June 15, acquired a 10.46% stake in government-backed sovereign AI model developer Sarvam AI for ₹1,427.25 crore.

The acquisition is expected to be completed within two weeks of signing. As part of the transaction, HCL Technologies will acquire 41,421 equity shares, representing a 10.46% stake in Sarvam AI. The transaction does not require any regulatory approval, a regulatory filing said.

“Sarvam, India's full-stack sovereign AI company, today announced that it has raised $234 million in the first close of its $300 million Series B at a post-money valuation of $1.5 billion,” HCL Technologies said in a statement.

Apart from HCLTech, Bessemer Venture Partners also invested in the round, along with continued support from existing investors like Khosla Ventures and Peak XV Partners. HCLTech will invest $150 million as the lead strategic investor in this round.

By combining its deep enterprise transformation expertise, trusted global client relationships, data and other software IP, and engineering depth, HCLTech would accelerate Sarvam's goal of building a powerful, end-to-end sovereign AI ecosystem for India and beyond.

C. Vijayakumar, CEO & Managing Director of HCLTech, said, "Our investment in Sarvam marks a significant step toward building India's trusted and globally competitive AI ecosystem. By bringing together Sarvam's research in AI models with HCLTech's global presence, we are creating a differentiated full-stack AI platform for enterprises and governments, strengthening our ability to deliver secure, scalable, and responsible AI solutions.

Sarvam builds across the AI stack: training and inference infrastructure, frontier model research, and a go-to-market motion spanning enterprises, developers, and government. The investment will fund Sarvam's continued research on training its next frontier model for agentic, coding, and cybersecurity use cases, as well as access to compute at scale to expand its forward-deployed motion across key verticals.

Objective of the investment

HCLTech’s independent investment will support Sarvam’s continued research and development, particularly in training next-generation frontier models focused on agentic AI, coding, and cybersecurity use cases. It will also provide access to large-scale compute infrastructure, enabling broader deployment of these solutions across key industry verticals.

Additionally, the investment aims to help build a sovereign AI ecosystem by combining Sarvam’s capabilities with HCLTech’s enterprise expertise and global client reach. This includes developing industry-specific AI solutions, expanding multilingual AI capabilities across India and global markets, and accelerating the adoption of secure, localized, and compliant AI solutions for governments, regulated sectors, and enterprises.

“We are clear that research-led innovation to create AI that works at India's scale is a very large opportunity. That means models that understand our voices, read our documents, and serve intelligence at a cost every enterprise and government can afford. Building on this template, we are innovating on a full-stack offering for enterprises to own and operate their own sovereign AI,” said Pratyush Kumar, co-founder of Sarvam.

Incorporated in 2023, Sarvam AI is building the bedrock of Sovereign AI for India. The company is developing India’s full-stack Sovereign AI platform across research, models, infrastructure, and applications, built to advance AI for all of India. Sarvam partners with leading Indian enterprises, including SBI Life, LIC, IDFC, Tata Capital, and CRED.

On Monday, HCL Technologies shares settled at ₹1,119.30 apiece on the National Stock Exchange, gaining 0.87%.