Coforge Ltd. is ramped up to determine the entitlement of equity shareholders for the purpose of a subdivision/Split of existing equity shares or a stock split of the company on June 4, 2025.
The company's board had agreed to split the equity shares such that an existing 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.
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.
To be eligible for a stock split, investors must 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 (for example, a 1:5 split means each existing share will be divided into five).
With India following the T+1 settlement cycle, investors need to purchase the stock at least one trading day before the record date to be eligible. Buying shares on the record date itself won't qualify, as the ownership won't be reflected in time.
In the first week of May, the company's share price hit a one-month high after it announced a dividend and stock split.
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