Infosys shares rallied over 2 per cent on Tuesday after country’s second largest IT services exporter bagged a Rs 1,380-crore contract from the Centre to build technology infrastructure for Goods and Services Tax Network (GSTN), a new single indirect tax structure across the country, which is expected to be rolled out next year.
At 11.05 am, Infosys shares were up 2.43 per cent on BSE. On NSE, shares were up 2.47 per cent at Rs 1,131.90. Sensex was trading 56.38 points up at 26,249.36 during the same time.
The share price of the IT major closed 0.08 per cent up at Rs 1,105.50.
According to analysts, the contract is for five years and Infosys may enjoy 22 per cent margins on it.
GSTN is a company formed to connect databases of states with the Centre and provide information technology (IT) infrastructure for seamless implementation of GST.
The government plans to implement the single rate GST from April 1, 2016, but it might be delayed as the constitution amendment bill for its implementation is yet to be approved by the Rajya Sabha where the ruling party does not enjoy majority on its own.
With inputs from the agencies