Coforge Shares Fall Sharply As Sentiment Sours — Here's What You Need To Know

Shares of Coforge have faced immense pressure in trade on Tuesday, falling up to 7% amid souring sentiment over the company's potential fundraise.

The stock is currently trading at Rs 1,791, reaching an intraday low of Rs 1,739, amounting to the stock's lowest point since Nov 10. The stock had ended Monday's trade at Rs 1,868.

The intense pressure on Coforge comes on the back of news that the company's board is set to meet on Dec. 26 to consider fresh fundraising.

Coforge had last raised funds in May 2024, raising Rs 2,240 crore to fund the Cigniti acquisition. In the past, the company has stated acquisitions as a key growth pillar.

However, the sentiment around the upcoming fundraiser appears to have soured, which in turn, is directly impacting the stock, according to analysts consulted by NDTV Profit.

Investors are also doubting the earlier statement by the company, which had promised 70% cash flow conversion.

With no one-ffs going forward and no large capex plans, investors fear the latest fundraise could be dilutive in nature.

In addition to holding a board meeting on a fresh fundraise, Coforge is also holding an analyst meet on Dec. 26.

As far as the company's fundamentals are concerned, the management has guided for a $2 billion revenue by FY27, with acquisitions serving as a key growth pillar.

Coforge, for his part, remains positive on the Cigniti acquisition, believing that it was one of the best decisions the company has made in the recent past.

Out of 38 analysts tracking the company, 28 maintain a 'buy' rating, four recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 2,016.33 implies an upside of 12.5%.