Coforge up 10%; Board Approves 1:5 Stock Split

Shares of Coforge surged by 9.9% on the BSE to touch ₹7,924.50 on March 5. The shares rallied after the board approved the stock split and acquisition.

As of 9:26 am, shares of Coforge were up by 7.16% at ₹7,720 apiece on the BSE. Market capitalisation of the company stood at ₹51,607.31 crore. The 52-week high of stock was seen at ₹10,017.95 per share, while the 52-week low came at ₹4,291.05 per share.

Stock spilt

The stock split was approved in the ratio of 1:5 where the existing equity shares having the face value of ₹10 will be split into 33,43,65,495 shares of face value of ₹2.

The filing read, “The alteration in the equity share capital of the company by sub-division / split of existing equity shares of face value of Rs 10 (Rupees ten only) each, fully paid-up into 33,43,65,495 (Thirty three crore forty-three lakhs sixty-five thousand four hundred ninety-five) equity shares of face value of Rs 2 (Rupees two only) each, fully paid-up, subject to approval of the members of the company.”

Notably, the stock split was carried out to boost the liquidity of equity shares, while encouraging smaller investors to invest in the company. This will lead to an increased shareholder base. The record date for the same is yet to be announced.

Coforge via its subsidiary Coforge Inc. is set to enter into a stock purchase agreement with Rythmos Inc. The company has also agreed to enter into a share sale agreement with TMLabs Pty Ltd through its arm Coforge Technologies Australia Pty Ltd.

Coforge shares have zoomed past 14% against Sensex's decline of 0.93% in one year.