Coforge shares underwent a technical adjustment today as the stock began trading ex-split. After closing at Rs 8,499 on the NSE on Tuesday, the stock opened at Rs 1,719 on June 4, reflecting the 1:5 stock split announced earlier. However, several trading platforms may have displayed an apparent 80% decline at open due to delayed updates in reflecting the adjusted stock price.
The information technology company firm had announced a stock split in which each equity share of Rs 10 face value, will be split into five equity shares of Rs 2 face value. Investors having Coforge shares in their demat account will be eligible for this corporate action and the stock price shall be adjusted in the same ratio, that is, 1:5 and adjusted shares will be traded on bourses from today.
Meanwhile, the stock actually rose 0.6% over the opening price to an intraday high of Rs 1,730 on the NSE today. Although the stock split increased the number of outstanding shares by five times, it had no impact on the market capitalisation as the rise in number of shares was countered by the technical adjustment in the stock price.
Coforge had pegged June 3 as the day for determining the eligibility for the aforesaid corporate actions. Stock split is usually undertaken to increase stock liquidity and make the shares more affordable for retail investors. Coforge reported a 34% on year rise in its consolidated net profit of Rs 261.2 crore for the March quarter.
The company’s revenue was recorded at Rs 3,409.9 crore, while operating margin was 13.2% for the fourth quarter of FY25. The company’s board of directors has also declared an interim dividend of Rs 19 per share. Its total contract value (TCV) of deals signed in the March quarter surged to $1.56-bn. Meanwhile, the executable order book for the upcoming 12 months stood at $1.5-bn, an over 10% spike on quarter.
