Coforge shares surge amid continuous fall in stock market, price rises to this much?
Today i.e. on Wednesday, the shares of midcap IT service Coforge saw a tremendous rise. It rose 9.25% to Rs 7,880 (Coforge Share Price) per share on NSE. The reason for this surge is the company’s recent announcements. These include stock split, a major partnership and acquisition (coforge news).
Small investors benefit from stock split (Coforge Share Price)
It rose 9.25% to Rs 7,880 (Coforge Share Price) per share on NSE. The reason behind this is the company’s many important announcements within 24 hours. The board of Coforge has approved the stock split in the ratio of 1:5. In simple language, it means that an equity share with a face value of Rs 10 will now turn into five equity shares (equity share price) of face value of Rs 2.
Coforge believes that this move will increase the liquidity of the shares and it will be easier for small investors to invest. According to the filing, there will also be a change in the total equity share capital of the company. Shares with a face value of Rs 10 will be converted into 33.43 crore (33,43,65,495) new shares. The record date of share split (coforge split date) will be informed soon.
13-year deal with Sabre Corporation
Along with this, Coforge has also announced a 13-year strategic partnership with travel technology company Sabre Corporation. This deal is worth about $ 1.56 billion i.e. about Rs 13,607 crore. Under this agreement, Coforge will help Sabre accelerate product development and bring AI-solutions.
Sabre CEO Kurt Eckert described this partnership as important and said that it will accelerate the development of future travel technologies. The company aims to become the most effective technology platform for the travel industry.
Announcement of takeover of Rithmos Inc. Apart from this, Coforge has also announced the takeover of American IT company Rithmos Inc. The annual turnover of this company is around $ 25.3 million i.e. Rs 2,204 crore. Coforge says that this acquisition will improve its data practice and cloud engineering capabilities.
Let us tell you that Rithmos is associated with the airline industry and has strong data analytics capabilities. No government or regulatory approval is required for the acquisition. This deal is expected to be completed by March 31, 2025.
Cost of takeover
Coforge will take 100% stake in Rithmos. The initial payment will be $ 30 million. So in future, up to an additional $ 18.7 million can be paid based on the target revenue and EBITDA performance of 2025 and 2026.
What are the signs for investors in Coforge?
These announcements of stock split, strategic partnership and takeover strengthen the future expansion and growth potential of Coforge. The market has reacted positively to these news. Due to which the stock saw a sharp jump.
