Coforge shares decline 4% ahead of board meet to decide fundraising on Mar 16

Shares of digital services and solutions firm Coforge Ltd dropped more than 4% on Thursday ahead of the company’s board meeting to consider a fundraising proposal.

Coforge shares opened lower and fell further 4.42% to hit a low of ₹5,900 per share on NSE. The stock is trading around 13% lower from its 52-week high of ₹6,847.45 hit on February 19.

Coforge Ltd, earlier known as NIIT Technologies, in a stock exchange filing said that its board will meet on March 16 to consider a fundraising plan to shore up its capital.

The company plans to raise funds through an issue of equity shares or any other eligible securities via qualified institutional placement or any other method on a private placement basis.

The board in its earlier meeting on March 2 decided to scrap plans to raise funds through an estimated $750 million initial public offer in the United States. The company in November 2021 filed papers for a US public offer but did not update the prospectus since July 2022.

The board stated that it decided to drop plans for the proposed offering of American Depository Receipts after due consideration of the prevailing market conditions and other relevant factors.

Earlier this month, Coforge announced a multi-year strategic partnership with Carnival UK, the parent company of P&O Cruises and Cunard. The partnership is aimed at enhancing the two cruise lines’ Quality Engineering and Testing capabilities across operational domains.

Coforge reported a 4% rise in net profit to ₹238 crore in the December quarter against a profit of ₹228.2 crore in the year-ago period. Its revenue from operations increased to ₹2,323.3 crore during the December quarter as against ₹2,055.8 crore a year ago.

Shares of Coforge were trading 1.03% lower at ₹6,109.95 apiece on NSE at 3:15 pm.