Coforge will divide one equity share that currently carries a face value of ₹10 into five equity shares, which will now have a face value of ₹2 each. This is the first stock split announced by the company.
The stock split is subject to approval from the company’s shareholders and the record date for this will be intimated in due course, Coforge said in its exchange filing.
This entire exercise of stock split and the reflection in to the demat account of shareholders is likely to be completed over the next three months.
Post the stock split, Coforge will now have 33.43 crore outstanding shares, compared to the pre-split figure of 6.68 crore.
Coforge shares currently trade at ₹7,215. In case the stock trades at this price as of the record date for the stock split, the price of the stock will become ₹1,443 as one share gets divided into five. An investor who has 100 shares at the pre-split price, will then have 500 shares at the post-split price. Of course, this is just for illustration purposes and the price of the stock as on the record date might vary.
Additionally, Coforge has also announced the acquisition of a 100% stake in Rythmos Transaction, an IT services company based in the US for an aggregate cash consideration of $30 million upfront and an additional payout in two tranches, subject to achievement of certain milestones.
Shares of Coforge ended 1.9% lower on Tuesday at ₹7,215. The stock has corrected 15% in the last one month and is down close to 30% from its all-time high level of ₹10,026.
