Coforge Share Price Rises 7% Post Stock Split and Acquisitions Announcement

Market Performance

Coforge share price rose over 7% in early trading on Wednesday following the announcement of a stock split and the approval of two acquisitions. The stock climbed by 7.59% to reach ₹7,751.60 per share on the BSE.

Stock Split Details

The Board of Directors of Coforge, during their meeting on March 4, 2025, approved the subdivision of its equity shares. The decision entails splitting one equity share of face value ₹10 into five equity shares, each valued at ₹2.

According to the official statement, this adjustment will result in a total of 33,43,65,495 equity shares of ₹2 each, fully paid-up. The company mentioned that the record date for the stock split will be announced in due course.

The main objective of the stock split is to improve the liquidity of Coforge's equity shares and make them more accessible for small investors, thereby increasing the shareholder base.

The execution of the stock split is contingent upon shareholder approval, which requires amending the Capital Clause of the company's Memorandum of Association.

Acquisition of Rythmos Inc

A 100% stake acquisition in Rythmos Transaction, an IT services firm, has been approved by Coforge board. The deal includes a upfront cash payment of $30 million, with an additional payout in two phases, contingent upon achieving specific milestones. The transaction is anticipated to be finalized by March 31, 2025.

Acquisition of TMLabs Pty Ltd

In another acquisition move, Coforge confirmed the purchase of a 100% stake in TMLabs Pty Ltd through its wholly-owned step-down subsidiary, Coforge Technologies Australia Pty Ltd. The acquisition includes an upfront payment of AUD 20 million, with additional payouts dependent on the company's revenue and EBITDA performance in FY26 and FY27. This transaction is also expected to be completed by March 31, 2025.

Summary

Coforge has announced a stock split to enhance liquidity and accessibility for investors. Additionally, the company has approved the acquisition of two IT services firms—Rythmos Inc. and TMLabs Pty Ltd—to strengthen its market position. The stock split and acquisitions are subject to required approvals, and both acquisitions are expected to be completed by the end of March 2025.