Mid-Tier IT Firm Completes the Acquisition of a 54 Per Cent Stake in Cigniti Technologies
The final tranche of the acquisition was completed on December 20, 2024, through an off-market transaction, with Coforge purchasing an additional 59,54,626 equity shares, representing 21.62 per cent of Cigniti’s expanded voting share capital.
Coforge Limited has completed the acquisition of a 54 per cent stake in Cigniti Technologies, marking a significant development for the mid-tier IT firm. The company acquired a total of 1,48,75,357 equity shares, which amounts to 54 per cent of the expanded voting share capital of Cigniti.
This follows an earlier disclosure where Coforge had acquired 89,20,731 equity shares, representing 32.68 per cent of Cigniti’s paid-up share capital. The final tranche of the acquisition was completed on December 20, 2024, through an off-market transaction, with Coforge purchasing an additional 59,54,626 equity shares, representing 21.62 per cent of Cigniti’s expanded voting share capital.
On Monday, Coforge shares rose by 1.65 per cent, reaching an intraday high of Rs 9525.00.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, do download the service details here.
About the Company
Coforge is an India-based IT solutions company engaged in application development and maintenance, managed services, cloud computing, and business process outsourcing. It is among the top 20 Indian software exporters. Prominent global customers include British Airways, the ING Group, SEI Investments, Sabre, and SITA. The completion of the acquisition of Cigniti Technologies strengthens Coforge’s service portfolio and is expected to enhance its market position, providing growth opportunities in the competitive IT sector.
The company delivered impressive returns of 50 per cent over the past year and stellar returns of 375 per cent over the past five years. Additionally, Coforge has a Return on Capital Employed (ROCE) of 28.6 per cent and a Return on Equity (ROE) of 24.1 per cent. Moreover, it maintains a healthy dividend payout ratio of 58.1 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.