Technology services firm Coforge Ltd. has announced plans to split its existing equity shares, with each share of Rs 10 face value being divided into five shares of Rs 2 each. The decision was approved by the company's board and marks the first such stock split in its history.
In a regulatory filing on March 5, Coforge announced the split, which will take the total number of outstanding shares from 6.68 crore to 33.43 crore, subject to shareholder approval.
Coforge will announce the record date in due course, it said in the filing. The entire process, including the crediting of split shares to shareholders' demat accounts, is expected to be finalised within the next three months.
If the company's share price, currently at Rs 7,886, remains the same on the record date, the adjusted stock price would become Rs 1,577 post-split.
An investor holding 100 shares before the split would see their holdings increase to 500 shares, although the actual stock price at the time of execution may differ.
In addition to the stock split, Coforge has announced the acquisition of Rythmos Transaction, a US-based IT services company, for an initial cash payment of $30 million. The deal includes an additional payout in two phases, contingent on the achievement of certain milestones.
Coforge Share Price Today
Coforge shares began trading on March 5 at Rs 7,531.05 per share on the NSE, marking an increase from the previous closing price of Rs 7,212.40. As the session progressed, the stock continued its upward momentum and recorded an intraday high of Rs 7,933.60 apiece.
At 10:10 a.m, it was trading 9.35% higher at Rs 7,886.95 apiece on the NSE in comparison to benchmark Nifty 50's rise of 0.75% to 22,247.2 points.
The stock has seen a 7% decline over the past month and is currently trading nearly 30% below its all-time high of Rs 10,026.80, which it recorded on December 30, 2024, according to NSE.
Coforge Q3 Results
Coforge reported a 6.6% quarter-on-quarter rise in its net profit for the Dec'24 quarter at Rs 216 crore versus Rs 202 crore in the preceding three months. Revenue from operations increased 8.4% to Rs 3,062 crore against Rs 3,318 crore in Q2. On the operating side, earnings before interest and tax stood at Rs 382 crore in Q3, while Ebit margins remained unchanged at 11.8%
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