Coforge share price in focus as board to mull stock split next week

Stock Split 2025: Shares of technology (IT) company Coforge were in focus on Thursday, February 27, as it announced that its board will meet next week to consider a stock split.

In an exchange filing on Tuesday, after market trading hours, Coforge said a meeting of its board is slated to take place on March 4, 2025, to consider the proposal of alteration in the share capital of the company by sub-division/ split of the existing equity shares.

"The meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, March 04, 2025, inter alia, to consider the proposal of alteration in the share capital of the Company by sub-division/split of the existing Equity Shares of the face value Rs. 10/- each, fully paid-up, in such a manner as may be determined by the Board of Directors, subject to approval of the shareholders of the Company and any approvals, as may be required under applicable law," Coforge said in an exchange filing.

If approved, this will be the first-ever stock split by Coforge.

The company further informed us that the trading window for dealing in Coforge's securities will remain closed for all designated persons and their immediate relatives. "The trading window will re-open 48 hours after the dissemination of the outcome of the meeting," it added.

Companies often undertake stock splits to enhance the liquidity of the company and make the shares more accessible for retail investors.

Coforge share price dips

Coforge share price drops nearly 2% following the announcement. Coforge share price opened at ₹7750, lower than its previous close of ₹7661.10. Thereafter, it extended its slide to hit the day's low of ₹7,539 apiece, falling 1.59% from its previous close.

In line with the weak market mood and drawdown in IT stocks, Coforge shares have tumbled 18% in the last one month and 12% in the past three months. However, in the past six months, Coforge shares have rallied 26% and are up 16% in a year.

Coforge Q3 reportcard

For the third quarter of the financial year 2024-25 (Q3 FY25), Coforge posted a net profit of ₹215.5 crore, a rise of 6.6% over the previous quarter.

The company’s Q3FY25 revenue grew 8.4% quarter-on-quarter (QoQ) to ₹3,318.2 crore. In constant currency (CC) terms, revenue grew by 8.4% on a sequential basis, while in US Dollar terms, topline rose by 7.5% QoQ to $397 million.

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