Coforge’s First-Ever Stock Split: 4 Things Investors Need to Know – Market News
Why Coforge is Splitting its Stock?
Coforge, one of the leading IT services companies, has announced its first-ever stock split, with an aim to make its shares more accessible to investors. But why is the company taking this step? In simple terms, stock split is typically done to reduce the price per share, making it more affordable for retail investors while increasing market liquidity. This move will change the face value of existing shares, making them more accessible without impacting the company’s overall market capitalization.
Coforge’s Stock Split Rationale
By splitting its shares, Coforge aims to make them more affordable and accessible to investors. A lower share price allows more people to buy and trade the stock easily, increasing its availability in the market. This also helps attract more retail investors, making it easier for them to invest in the company. With this move, Coforge is focusing on increasing the attractiveness of its stock, making it more appealing to a broader range of investors.
Coforge’s Q3FY25 Performance
Coforge has had a strong performance in the December quarter (Q3FY25), with a 10% growth in net profit, reaching Rs 268 crore. The company’s revenue surged to Rs 3,318.2 crore, a 8.4% rise QoQ and a 40.3% jump YoY in constant currency terms. In dollar terms, revenue grew 7.5% QoQ and 40.8% YoY. Meanwhile, EBITDA stood at Rs 519 crore, a 29.3% increase compared to the previous year.
Coforge’s Stock Performance
In the previous trading session, Coforge’s share price closed at Rs 7,595, marking a 0.44% decline. Over the past month, the stock has seen a 14% drop. However, looking at a broader timeframe, Coforge has delivered a 26% return and recorded a 15% gain over the past year. As of the latest update, the company’s market capitalization stands at Rs 46,940 crore.
What’s Next for Coforge?
As Coforge’s Board of Directors meets on March 4, 2025, to finalize the details of the stock split, subject to shareholder and regulatory approvals, investors are eagerly waiting to see the impact of this move on the company’s stock performance. Will Coforge’s stock split lead to increased liquidity and attract more retail investors? Only time will tell. However, one thing is certain – Coforge’s decision to split its stock is a bold move aimed at making its shares more accessible to a broader range of investors.
Key Points to Remember:
- Coforge’s first-ever stock split is aimed at making its shares more affordable and accessible to investors.
- The company’s Board of Directors will meet on March 4, 2025, to finalize the details of the stock split, subject to shareholder and regulatory approvals.
- Coforge’s Q3FY25 performance was strong, with a 10% growth in net profit and a 40.3% jump in revenue YoY.
- The company’s stock performance has seen a 26% return and a 15% gain over the past year, although it has seen a 14% drop over the past month.
As we await the outcome of Coforge’s stock split, one thing is certain – this move has the potential to revolutionize the company’s stock performance and make it more attractive to a broader range of investors. With a strong track record of performance and a bold move to split its stock, Coforge is poised to make its mark on the market.
Live News Daily is a trusted name in the digital news space, delivering accurate, timely, and in-depth reporting on a wide range of topics.