Shares of Coforge Ltd hit the 10% upper circuit on Wednesday, 5 March, after the company announced securing approval from the Board of Directors for stock split and acquisition.
Stock Split Approval
The board meeting decided on a 1:5 stock split, which means that existing equity shares of Rs 10 each will be split into 33,43,65,495 shares for Rs 2.
In its regulatory filing, the company said, “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 stock split was justified as a means of increasing the liquidity of the company’s equity shares and increasing the number of shareholders by making it more affordable to invest in the company’s equity shares. This attracted small investors. The date of the record for the same will be announced soon.
Acquisition Approval
The board also agreed to buy the equity of Rythmos Inc. through its subsidiary Coforge Inc. Additionally, it has agreed to sell shares to TMLabs Pty Ltd through its subsidiary Coforge Technologies Australia Pty Ltd.
Rythmos and TMLabs are expected to finalize the agreement by 31 March 2025. A 30% down payment is required to acquire a 100% share in Rythmos. A 100% share in TMLabs will be acquired as part of the agreement, along with an upfront payment of AUD 20 million.
At 2:22 pm, the shares of Coforge were trading 7.51% higher at Rs 7,754 on NSE.
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