US-based corporate software maker PeopleSoft will invest $30-40 million in a services centre in Bangalore to be set up and managed by India's Hexaware Technologies, the Bombay Stock Exchange said on Thursday.

It said the investment will be made over three years.

By the end of the year, the centre will hire 300 people to be employed by Hexaware, the BSE said. This strength is projected to expand to 700, it added but did not specify a timeframe for the expansion.

After the news, Hexaware Technology's shares rose as much as 12.17 per cent to a high of Rs 124.40 in opening trade at the BSE whose benchmark index was flat.

The southern city of Bangalore is the centre for the country's software sector.