The shares of the digital services and solutions provider gained up to 1.1 percent after Foreign portfolio investors bought an additional 3.22 lakh equity shares in the company.
With a market capitalization of Rs 31,537.05 crore, the shares of Coforge Ltd were trading at Rs 5,102.00 per share, increasing around 0.66 percent s compared to the previous closing price of Rs 5068.70 apiece.
As of March 2024, New World Fund Inc., a foreign portfolio investor holds 8.03 lakh equity shares which is equivalent to 1.31 percent of Coforge Ltd, moreover, New World Fund Inc. has bought an additional 3,22 lakh equity shares in the company at an average price of Rs 5,073.66 per share valued at Rs 163.65 crore.
Looking into Coforge Ltd’s performance, revenue increased by 9 percent from Rs 2,170 Crore in Q3FY23 to Rs 2,358 Crore in Q3FY24. During the same time frame, net profit increased by 95 percent from Rs 117 crore to Rs 229 crore.
Recently, the company has launched a Qualified Institutional Placement (QIP) to raise up to Rs 2,240 crore. The floor price for the QIP has been fixed at ₹4,531 per share. the company will use the proceeds raised from this QIP to support its recent acquisition of Cigniti Technologies. Coforge plans to buy up to 54% of Hyderabad-based Cigniti Technologies.
Moreover, Coforge wants to leverage this purchase to help it reach its objective of being a $2 billion company by fiscal year 2027. It also intends to boost margins by 150 to 200 basis points within this time frame through this transaction.
In the company’s recent shareholding pattern, Domestic Institutional Investors own 35.00 percent while Retail shareholders own a 10.69 percent stake in the company and foreign Institutional Investors own a 54.29 percent stake.
Coforge Limited is an India-based information technology (IT) solutions provider. It specializes in in-app development and maintenance, managed services, cloud computing, and business process outsourcing. The company provides computer programming consulting and related services.
Written by:- Abhishek Singh
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