Coforge hits upper circuit as board approves stock split, acquisition

Coforge shares rallied 9.9 per cent in Wednesday's trade on BSE, and touched the upper band at Rs 7,924.50 per share. The buying on the counter came after the board approved the stock split and acquisition. 

 

Around 9:26 AM, Coforge share price was up 7.16 per cent at Rs 7,720 per share on BSE. In comparison, the BSE Sensex was down 0.32 per cent at 73,225.36. The market capitalisation of the company stood at Rs 51,607.31 crore. The 52-week high of the stock was at Rs 10,017.95 per share and the 52-week low was at Rs 4,291.05 per share. 

 

Coforge stock split

In the board meeting, a stock split was approved in a 1:5 ratio i.e. existing equity shares of face value of Rs 10 each will be split into 33,43,65,495 shares of face value of Rs 2. 

 

"The alteration in the equity share capital of the company by sub-division / split of existing equity shares of face value of Rs 10 (Rupees ten only) each, fully paid-up into 33,43,65,495 (Thirty three crore forty-three lakhs sixty-five thousand four hundred ninety-five) equity shares of face value of Rs 2 (Rupees two only) each, fully paid-up, subject to approval of the members of the company," the filing read.  

 

The rationale behind the stock split was to enhance the liquidity of the company's equity shares and to encourage the participation of small investors by making it more affordable to invest in the equity shares of the Company, leading to an enhanced shareholder base. The record date for the same will be announced soon. 

 

That apart, Coforge through its subsidiary Coforge Inc., has agreed to enter into a stock purchase agreement with Rythmos Inc. It has also  agreed to enter into a share sale agreement with TMLabs Pty Ltd through its arm Coforge Technologies Australia Pty Ltd.  ALSO READ: Welspun Specialty stock hits 5% upper circuit on Rs 232-cr order win

 

Rythmos and TMLabs transaction is expected to be completed by March 31, 2025. Rythmos transaction involves the acquisition of a 100 per cent stake with an initial upfront purchase consideration of $ 30 million. The TMLabs transaction involves the acquisition of a 100 per cent stake with an initial upfront purchase consideration of AUD 20 million.

 

In the past one year, Coforge shares have gained 14 per cent against Sensex's decline of 0.93 per cent.