Coforge share price jumps over 7% on 1:5 stock split, acquisition updates

Coforge share price jumped over 7% in early trade on Wednesday after the IT company announced the board approval for a proposal of a stock split and two acquisitions. Coforge shares rallied as much as 7.59% to ₹7,751.60 apiece on the BSE.

The Board of Directors of Coforge at their meeting held on March 04, 2025, have considered and approved two proposals. The first proposal was for the sub-division of its equity shares or stock split, while the second proposal was acquisition of two companies.

Coforge Stock Split

Coforge said its board of directors approved a stock split in the ratio of 1:5. The company will divide its one equity share of face value of ₹10 into five equity shares of face value of ₹2 each.

“...the Board of Directors at their meeting held on March 04, 2025, have considered and approved the alteration in the equity share capital of the Company by sub-division / split of existing equity shares of face value of ₹10 each, fully paid-up into 33,43,65,495 equity shares of face value of ₹2 each, fully paid-up,” Coforge said on March 5.

Coforge stock split record date will be intimated in due course, it added.

The rationale behind the Coforge stock split, the company said, was “with a view to enhance the liquidity of the company’s equity shares and to encourage the participation of small investors by making it more affordable to invest in the equity shares of the company, leading to enhanced shareholder base.”

The alteration of Capital Clause of the Memorandum of Association of the Company consequent to the sub-division or stock split of existing equity shares, is subject to approval of the members of the company.

Rythmos Inc Acquisition

Coforge board also approved the acquisition of a 100% stake in IT services company Rythmos Transaction, for an aggregate cash consideration of $30 million upfront and an additional payout in two tranches, subject to achievement of certain milestones.

Rythmos Transaction is expected to be completed by March 31, 2025, it said.

TMLabs Pty Ltd Acquisition

Coforge announced the acquisition a 100% stake in TMLabs Pty Ltd through its wholly-owned step-down subsidiary, Coforge Technologies Australia Pty Ltd, for an initial upfront purchase consideration of AUD 20 million and an additional payout based on the achievement or performance of certain revenue and EBITDA targets for FY26 and FY27.

The TMLabs Transaction is expected to be completed by March 31, 2025, it added.

At 9:25 AM, Coforge shares were trading 7.39% higher at ₹7,736.50 apiece on the BSE.

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