Mastek shares hit 20% upper circuit on securing supply contract from UK’s Defence Ministry

Shares of Mastek Limited surged 20% to hit the upper circuit limit at ₹3,099.1 apiece on the NSE on Thursday, April 18, after the company announced securing a supply contract from the United Kingdom’s Ministry of Defence.

In a stock exchange filing, Mastek said that it has been named as a supplier for the Digital and IT Professional Services (DIPS) Framework of the UK’s Defence Ministry.

The supply contract includes solution, enterprise and tech architecture, data, innovation, tech assurance and knowledge, and information management. Mastek will also collaborate with Qinetiq Limited as a subcontractor for apps, user experience, development operations, system design and application support, as well as cybersecurity, crypto, security operations and integrated systems.

Shares of the leading digital engineering and cloud transformation services provider rallied up to 20% to hit the upper circuit limit after the announcement. The stock, however, pared its early gains to close at ₹2,801.60 per share, up 8.4%, on the NSE.

The DIPS framework has a budget of around £1.2 billion over four years. The framework will support the Defence Ministry’s digital strategy by facilitating advancements in data management, modern technology and cyber defence among others. The regulatory filing added that this framework will ensure timely, cost-effective and relevant solutions to meet defence’s evolving needs.

Dean Richardson, head of digital enablement at Mastek, said, “We’ve brought together a strong supply chain ecosystem, which gives us the best structure to deliver against the MOD’s future requirements. We have used the procurement time wisely and are ready to get started.”

Mastek has been a supplier to the UK’s Ministry of Defence since 2017 and continues to invest in developing their mission-critical capabilities in the areas of strategy, digital and cloud applications, architecture, security and identity management.

Since 2017, Mastek has helped the Ministry in enhancing their critical capabilities in areas of strategic development, digital and cloud applications, architecture, security and identity management.

Mastek serves various industries including healthcare and life sciences, retail and consumer, manufacturing and financial services in 40 countries, including the UK, US, Europe, the Middle East and Asia Pacific.