In a regulatory filing made after market hours on Monday (November 20), the IT major stated that the company, through our material subsidiary Tech Mahindra (Americas) Inc., has entered into a collaboration deed with TONOMUS and will, subject to receiving any applicable regulatory clearances, incorporate a new wholly-owned subsidiary (JVCo).

TONOMUS will initially be granted equity warrants in JVCo and, based on JVCo achieving specified revenue thresholds, may be granted additional equity warrants. Subject to the terms of the Collaboration Deed, the warrants can be converted into shares of JVCo by TONOMUS.

Tech Mahindra and TONOMUS will each contribute or license certain assets and intellectual property to JVCo.

The parties intend for the JVCo to provide product and platform development services, platform and product engineering services and solutions, network services, metaverse services and solutions, intellectual property development services, and cognitive solutions and services to TONOMUS, other NEOM group companies and other customers relating to cognitive city development.

Tech Mahindra is focused on leveraging next-generation technologies including 5G, blockchain, cybersecurity, artificial intelligence, and more, to enable end-to-end digital transformation for global customers.

The IT major's consolidated net profit slipped 28.68% to Rs 493.9 crore in Q2 FY24 as against Rs 692.5 crore posted in Q1 FY24. Revenue from operations declined 2.24% quarter on quarter (QoQ) to Rs 12,863.9 crore in the quarter ended 30 September 2023.

The scrip declined 0.12% to currently trade at Rs 1210.20 on the BSE.