New Delhi: Noida-based IT major Coforge shares fell sharply on December 23, dropping nearly 7 percent during the day. On the BSE, the stock slipped to around Rs 1,739.05. Following the fall, the company’s market capitalisation declined to about Rs 59,558 crore. The stock’s 52-week high stands at Rs 2,003.59, while the 52-week low is Rs 1,190.84.
Reason Behind the Sharp Fall
The sharp decline came after Coforge informed stock exchanges that its board of directors will meet on Friday, December 26. The board will discuss a proposal to raise fresh funds. This announcement triggered heavy selling as investors worried about possible equity dilution.
Details of the Fund-Raising Plan
Coforge said it may raise funds by issuing equity shares or other eligible securities. The fund-raising could be done through several routes, including Qualified Institutional Placement (QIP), private placement, preferential issue, or any other method allowed under the law. The company added that all required approvals from regulators and shareholders will be taken before moving ahead.
Conference Call With Investors
The company also announced that after the board meeting, it will hold a conference call at 5:30 pm with analysts and institutional investors. During the call, Coforge will explain its fund-raising plans and discuss key business developments. This interaction is expected to provide more clarity on how the funds will be used.
Second Fund Raise in 18 Months
This is the second time in the last 18 months that Coforge is planning to raise funds. Earlier, the company raised Rs 2,240 crore through a QIP to fund the acquisition of Cigniti Technologies. At that time, shares were issued at Rs 4,600 per share, which later became Rs 920 after a 1:5 stock split. Since then, the share price has nearly doubled.
Strong Financial Performance
Despite the stock’s fall, Coforge has delivered strong financial results. In the second quarter of FY26, the company reported a consolidated net profit of Rs 375.8 crore, up 18.4 per cent quarter-on-quarter. Revenue also rose 8.05 per cent to Rs 3,985.7 crore. EBITDA increased 15.3 per cent to Rs 728.2 crore, with margins improving to 18.3 per cent.
Why Investors Remain Cautious?
Even with solid earnings, the stock remained under pressure as markets reacted to the possibility of fresh share issuance. Investors are now waiting for clarity from the upcoming board meeting.
