Large-cap IT Company announced Stock Split and Two Major Acquisitions; Stock Price Soared by 9 per cent to Intraday High
With a market capitalisation of Rs 51,915 crore and the stock price has logged a 21.37 per cent increase in the last one year.
Shares of Coforge Ltd jumped over 9 per cent on Wednesday to an intraday high of Rs 8,006, due to following stock specific development.
Coforge Ltd has announced key decisions following its Board of Directors meeting held on March 4, 2025. The company has approved a stock split of its equity shares and confirmed two acquisitions through its subsidiaries.
DSIJ’s ‘Flash News Investment' weekly Newsletter recommends profit-making ideas for you based on fundamental and technical analysis. If this interests you, do download the service details here.
Stock Split Details
The Board of Directors has approved the sub-division of existing equity shares. The current face value of Rs. 10 per share will be split into shares with a face value of Rs. 2 each. This will result in an increase in the total number of equity shares to 33,43,65,495. The stock split is subject to shareholder approval, and the record date for this change will be announced later.
Acquisitions
Coforge has also announced two major acquisitions through its subsidiaries:
- Acquisition of Rythmos Inc.: Coforge Inc., a wholly owned subsidiary of Coforge Limited, has entered into a stock purchase agreement to acquire Rythmos Inc. The agreement covers the purchase of all outstanding shares of Rythmos Inc., subject to closing conditions.
- Acquisition of TMLabs Pty Ltd: Coforge Technologies Australia Pty Ltd, a wholly owned step-down subsidiary, has signed a share sale agreement with TMLabs Pty Ltd and its shareholders to acquire full ownership of the company. This transaction is also subject to regulatory approvals and closing conditions.
About Company
Coforge is an IT services company providing end-to-end software solutions and services. It is among the top-20 Indian software exporters. Prominent global customers include British Airways, the ING group, SEI Investments, Sabre, and SITA. Over the years, Coforge has set up subsidiaries in the US, Singapore, Australia, UK, Germany and Thailand, mainly to market and mobilise projects for the software division. The company has business partnerships with large IT companies across the world.
With a market capitalisation of Rs 51,915 crore and a PE ratio of 67.7x, the company trades at a premium compared to the industry PE of 29.2x. The company has ROCE of 28.6 per cent and ROE of 24.1 per cent. The stock price has logged a 21.37 per cent increase in the last one year.
Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.