Coforge Ltd. on Monday announced that it has received board nod to split its existing equity shares into two. The company has fixed June 4 as the record date for determining the eligibility of shareholders for the purpose of 1:2 stock split.
The company's board has agreed to split the equity shares such that existing one equity share having a face value of Rs 10 each will be divided "into two equity shares of Rs 5 each, fully paid up", an exchange filing stated.
At present, the total number of shares of Coforge stands at 6.69 crore, as per the shareholding pattern available with the BSE. The company's market capitalisation stands at Rs 50,153.12 crore.
The stock split would not alter the company's market cap, but double the number of shares. This exercise is generally aimed at improving market liquidity.
Coforge also declared its results for the January-March quarter on Monday. The IT firm's revenue rose sequentially by 4.6% to Rs 3,409 crore. The company's net profit went up 21% sequentially at Rs 261.2 crore.
The company also declared a fourth interim dividend of Rs 19 per share.
Shares of Coforge closed 1.55% higher at Rs 7,496.5 apiece on the NSE, compared to the 0.47% rise in the benchmark Nifty 50. The stock has risen 69.9% in the last 12 months and fallen 22.4% on a year-to-date basis.
Twenty-six out of the 38 analysts tracking the company have a 'buy' rating on the stock, four recommend a 'hold' and eight suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 16.9%.
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