Shares of LTIMindtree Limited surged 0.93% on March 6, when it was informed through a regulatory filing on March 5 that it had executed a Shareholder’s Agreement with Global Digital Integrated Solutions Company (Global Digital). Global Digital is a wholly owned subsidiary of Saudi Arabian Oil Company (Saudi Aramco).

This agreement is for setting up a Joint Venture in the Kingdom of Saudi Arabia to provide IT services in the Middle East and North Africa (MENA) region.

The joint venture’s initial investment is USD 12.3 million, with LTIMindtree holding 51% of the share capital and Global Digital owning the remaining 49%. The joint venture’s goal is to introduce advanced technology across private and government sectors in the MENA region, specifically in Saudi Arabia, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Tunisia, the UAE, and Egypt.

The joint venture aims to drive digital transformation in Saudi Arabia, fostering the growth of the digital economy by bridging gaps, sharing IT expertise, and cultivating a robust ecosystem for IT and Digital Transformation services in the country. The joint venture offers a lucrative opportunity to expedite Saudi Arabia’s digital transformation through collaborative innovation and the creation of shared intellectual property, aligning with Saudi Arabia’s Vision 2030.

The joint venture’s board will have a total of five members, with LTIMindtree appointing/removing three and Global Digital appointing/removing two.

Sudhir Chaturvedi, President and Executive Board Member of LTIMindtree, said that Aramco Digital would bring our global capabilities and expertise and leverage new technologies to deliver digital transformation suitable for giga projects, the government sector, high-growth industries, energy, manufacturing, and the financial services sector.

At 3:30 pm, the shares of LTIMindtree closed 0.73% higher at Rs 5,169.00 on NSE.