Coforge, one of the leading IT services company, has announced its first-ever stock split, with an aim to make its shares more accessible to investors. The company’s Board of Directors will meet on March 4, 2025, to finalise the details of the stock split, subject to shareholder and regulatory approvals, the company said in an exchange filing on Tuesday (February 25).
“The meeting of Board of Directors of the Company is scheduled to be held on Tuesday, March 04, 2025, inter-alia to consider the proposal of alteration in the share capital of the Company by sub-division/ split of the existing Equity Shares of the face value Rs. 10/- each, fully paid-up, in such a manner as may be determined by the Board of Directors subject to approval of the shareholders of the Company and any approvals, as may be required under applicable law,” the company said through a regulatory filing.
Why is Coforge splitting its stock?
In simple terms, stock split is typically done to reduce the price per share, making it more affordable for retail investors while increasing market liquidity.
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Once approved, the stock split will change the face value of existing shares, making them more accessible without impacting the company’s overall market capitalisation.
Coforge stock split rationale
Coforge’s split its shares in a way means to make them more affordable and accessible to investors.
A lower share price allows more people to buy and trade the stock easily, increasing its availability in the market. This also helps attract more retail investors, making it easier for them to invest in the company.
Coforge: Q3FY25 performance
Coforge reported a 10% growth in net profit, reaching Rs 268 crore in the December quarter (Q3FY25). The company’s revenue surged to Rs 3,318.2 crore, a 8.4% rise QoQ and a 40.3% jump YoY in constant currency terms.
In dollar terms, revenue grew 7.5% QoQ and 40.8% YoY. Meanwhile, EBITDA stood at Rs 519 crore, a 29.3% increase compared to the previous year.
Coforge: Stock performance
In the previous trading session, Coforge’s share price closed at Rs 7,595, marking a 0.44% decline. Over the past month, the stock has seen a 14% drop.
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