Coforge Ltd.'s share price rose 1.45% on Wednesday as the stock began trading on an ex-split basis. The company had previously set June 4 as the record date to determine the eligibility of shareholders entitled to receive the subdivided equity shares in a 1:5 ratio.
The stock split will not affect the company's market capitalisation but will increase the number of shares fivefold. This move is generally aimed at enhancing market liquidity.
To qualify for the stock split, investors needed to hold shares as of the record date announced by the company. The record date determines who will receive additional shares post-split, based on the split ratio.
Given India's T+1 settlement cycle, investors had to purchase the stock at least one trading day before the record date to be eligible. Buying shares on the record date itself would not qualify, as the ownership would not be reflected in time.
Coforge, formerly known as NIIT Technologies, is a global digital services and solutions provider headquartered in Noida, India, with additional offices in New Jersey, USA.
Established in 1992, Coforge specialises in leveraging emerging technologies and deep domain expertise to deliver impactful business solutions across various sectors, including digital supply chain, artificial intelligence, cloud infrastructure, and data management.
The company' shares are publicly traded on the BSE and the National Stock Exchange of India.
Coforge Share Price
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