Coforge Shares Up 9% As Board Approves 1:5 Stock Split – News18
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Coforge Share Price: Coforge has announced a 1:5 stock split. The record date will be announced soon.
Coforge announces 1:5 stock split.
Coforge Share Price: Coforge shares jumped 9 per cent during the intraday in the morning following the announcement of a 1:5 stock split and acquisition. Around 9:30 AM, shares of IT firm were trading at Rs 7868.35 apiece, up 9.22 per cent, against the day’s opening at Rs 7474.05 apiece.
Coforge’s current market cap stands at Rs 52,518 crore, making it a constituent of BSE 200.
IT firm Coforge has announced a share split in the ratio of 1:5. This means that one stock with a face value of Rs 10 will be split into five stocks with a face value of Rs 2 each.
Coforge Stock Split 2025 Record Date
The company stated that the record date for the stock split will be announced soon.
Coforge Acquisition
Rythmos Inc. (“Target Company”) is being acquired. Rythmos’ turnover for the calendar year ended December 31, 2024, was $25.3 million (INR equivalent 2,204 million at an exchange rate of USD 1 = INR 87.0).
The acquisition of Rythmos Inc. is not a related party transaction. No promoters, promoter groups, or group companies have any interest in the Target Company Rythmos Inc. operates in the IT/ITeS industry.
The acquisition will enhance the company’s data practice and cloud engineering capabilities. Rythmos brings valuable data expertise and strong industry knowledge in the airlines sector.
No governmental or regulatory approvals are required for the acquisition. The acquisition is expected to be finalized by March 31, 2025, or a mutually agreed upon date, subject to the terms of the Stock Purchase Agreement.
The consideration for the acquisition will be paid in cash.
Coforge Inc. will acquire 100% of Rythmos’ stake for an initial upfront purchase consideration of $30.0 million. This consideration is subject to adjustments and the fulfillment of certain conditions as outlined in the Stock Purchase Agreement. Additionally, an earnout amount, capped at $18.7 million, will be paid to the Target Company’s stockholders in two tranches based on the achievement of specific revenue and EBITDA targets in 2025 and 2026.
