Coforge spurts after board OKs 1:5 stock split

Coforge surged 9.88% to Rs 7916.15 after the company's board approved a stock split in the ratio of 1:5 for its equity shares.

The companys board approved sub division of one existing equity share having face value of Rs 10 each into five equity shares of Rs 2 each, subject to approval of the members of the company. The record date for sub-division / split of existing equity shares will be intimated in due course.

The sub division is expected to be completed within three months from the approval of the members.

Meanwhile, the companys wholly owned subsidiary, Coforge Inc., has agreed to enter into a stock purchase agreement with Rythmos Inc. and its stockholders to acquire all of the outstanding shares of capital stock of Rythmos Inc.

Further, the companys wholly owned -owned step-down subsidiary, Coforge Technologies Australia Pty, has agreed to enter into a share sale agreement with TMLabs Pty Ltd and its shareholders to acquire all of the outstanding shares of TMLabs Pty Ltd.

Furthermore, the company has entered into a 13-year partnership agreement with Sabre Corporation, valued at approximately $ 1.56 billion, to accelerate Sabres product roadmap and introduce innovative AI-enabled solutions.

Coforge is a global digital services and solutions provider that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. The firm has a presence in 21 countries with 26 delivery centers across nine countries.

The company reported 9.5% rise in net profit, excluding minority interest, to Rs 255.9 crore in Q3 FY25 from Rs 233.6 crore in Q2 FY25. The companys gross revenues increased by 8.4% quarter-on-quarter (QoQ) to Rs 3,318.2 crore in the December 2024 quarter.

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