Shares of this IT stock under the ‘mid-cap’ category fell nearly 2 percent in Monday’s trading session after the company’s Board decided not to proceed with the American Depository Receipts (ADRs) which were proposed as well as approved earlier in 2021. In the past six months, the company’s stock gained around 15 percent for its holders.
With a market capitalization of Rs 39,855.06 crores, the stocks of Coforge Limited started their trading session on Monday at Rs 6,501.85 and currently trade at Rs 6,449.05. The company’s scrip witnessed an intra-day low price of Rs 6,407.50 exhibiting a fall of around 2 percent compared to the previous close of Rs 6,510.85 apiece.
Such bearish stock price movements were observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that the company’s Board, in its meeting held on 2nd March 2024, decided not to proceed with the proposed offering of ‘American Depository Receipts’ (ADRs).
The same was approved via their resolutions during July 2021 and November 2021 and via a special resolution of the shareholders of the company in July 2021. “The company will be filing the appropriate applications with Securities Exchange Commission (SEC) to withdraw the Form F – 1 registration statement filed with the SEC,” the company mentioned.
American Depositary Receipts are negotiable certificates issued by a U.S. depositary bank representing a specified number of shares of a foreign company’s stock.
During the recent financial quarters, the company’s prime business parameters, viz, operating revenues as well as after-tax profits, increased in numbers with the former rising from Rs 2,276 crores during Q2FY24 to Rs 2,323 crores during Q3FY24, and the latter, during the same period, rose from Rs 188 crores to Rs 243 crores.
During FY23, the company’s return ratios were reported at healthy numbers with the return on equity (RoE) reported at 22.50 percent and the return on capital employed (RoCE) at 27.48 percent.
Coforge Limited is engaged in the business of providing various information technology (IT) services, some of which include infrastructure management, application & network testing, business processes, digital services, etc. The company’s customers typically operate in the banking & financial services, manufacturing, insurance, and media industries.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
