Shares of Coforge surged nearly 2% after the company launched a qualified institutional placement (QIP) to raise up to Rs 2,240 crore. The proceeds from the share sale will be utilized to fund the acquisition of Cigniti Technologies Limited, a leading provider of software testing and quality engineering services.
According to reports from CNBC-TV18, Coforge initiated the share placement for qualified institutional buyers late on Tuesday, May 21. The company had previously sought approval for the share sale in March earlier this year.
The floor price for the QIP has been set at Rs 4,531.40 per share, representing a 5.4 percent discount to Tuesday’s closing price. Sources indicate that the indicative issue price range for the Coforge QIP is between Rs 4,531 and Rs 4,600 per share, which will lead to a dilution of up to 8% of the company’s equity share capital.
Coforge has informed stock exchanges that a meeting to finalize the issue price of the share placement to qualified institutional buyers will be held on Monday, May 27. Sources suggest that the company may issue between 48.69 lakh to 49.43 lakh fresh shares as part of the QIP.
As of 10:51 am, Coforge shares were trading 1.25% higher at Rs 4,850.00 on the stock exchange.
