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Coforge Sets Dec. 26 Board Meeting to Weigh Fundraising as Shares Fall About 7%

Investor selling reflects dilution fears from a possible equity raise.

Overview

  • The company said its board will consider raising capital via equity shares or other securities, including QIP, private placement or a preferential issue, subject to required approvals.
  • The stock dropped to about Rs 1,739 on the BSE on December 23, trimming the market value to roughly Rs 60,000 crore.
  • Coforge scheduled an analyst and investor call for 5:30 pm IST on December 26 after the board meeting, followed by non-deal roadshows in Mumbai on December 29 and Singapore on December 30.
  • This would be the second equity raise in about 18 months, after a Rs 2,240 crore QIP in May 2024 used to finance the Cigniti Technologies acquisition.
  • Management has guided to $2 billion in revenue by FY27 and recently reported Q2 FY26 profit of Rs 375.8 crore on revenue of Rs 3,985.7 crore.