Coforge’s share price rallied 10% to an intra-day high of Rs 7,933.60 on the National Stock Exchange. The surge in its share price came after its board approved the proposal for a stock split, being the first for the company.
Coforge stock-split ratio
The tech company will split the stock in a ratio of 1:5, which means every one equity share that currently carries a face value of Rs 10 will be split into five equity shares. Now, the shares of Coforge will have a face value of Rs 2 each. The completion of the stock split is likely within 3 months from the approval of shareholders.
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The reason the company gave behind the stock split is, “with a view 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 enhanced shareholder base.”
As of now, Coforge has 6.68 crore shares outstanding, which after the split will be 3.43 crore shares.
Apart from the announcement of stock split, the company has acquired two companies: Rythmos Inc. and TMLabs Pty Ltd.
“The Company, through its wholly owned subsidiary, Coforge Inc., has agreed to enter into a stock purchase agreement with Rythmos Inc. and its stockholders(“Stock Purchase Agreement”) to acquire all of the outstanding shares of capital stock of Rythmos Inc. (“Rythmos Transaction”), subject to completion of closing conditions and closing deliverables as per the Stock Purchase Agreement,” read an exchange filing.
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The company reported a net profit of Rs 215.5 crore in the third quarter of the current financial year, an increase of 6.6% sequqntially. The company’s revenue growth stood at 8.4% quarter-on-quarter at Rs 3,318.2 crore in Q3 FY25. In constant currency terms, revenue grew by 8.4% QoQ, while in US Dollar terms, it saw a growth of 7.5% QoQ to $397 million.
Coforge Vs Nifty 50
The share price of Coforge has risen 5.6% in the previous five days. The stock has fallen 6% in the past one month.
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