Coforge Shares Tumble 7% As Scrapped U.S. IPO Eclipses Rs 3,200-Crore QIP

Shares of Coforge Ltd. tumbled to its lowest in three months on Monday despite its board approving plans to raise Rs 3,200 crore through qualified institutional placement.

Details of the QIP, dates and pricing are yet to be determined, according to an exchange filing.

The company had recently requested the U.S. Securities and Exchange Commission to withdraw its $750 million IPO in the U.S. The company did not offer a reason for calling off the listing.

Shares of the company fell as much as 7.22% to Rs 5,675 apiece, the lowest level since Dec. 7. It pared losses to trade 6.9% lower at Rs 5,697 apiece as of 11:26 a.m. This compares to a 0.3% decline in the NSE Nifty 50 Index.

The stock has risen 49.36% in the last 12 months. Total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 23.17, indicating that the stock may be oversold.

Out of 35 analysts tracking the company, 20 maintain a 'buy' rating, seven recommend a 'hold,' and eight suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 15.5%.