Coforge Acquires Additional 28% Stake in Cigniti Technologies for Rs 1,072 Crore

The total number of shares acquired by Coforge Ltd. is 46,18,199, according to block deal data that is accessible on the BSE. 16.9% stake in Cigniti Technologies and a total of 28% stakes acquired by Coforge Ltd. On July 5, 2024, for 645 crores, 17% of stockholding was done by Coforge Ltd. through open market transactions. Each share they bought had an average price of 1398.5 rupees and they spent a total of 645.85 crores on their purchase.Kukunuru Madhava Lakshmi and Kukunuru Kumar Bapuji, public shareholders of Cigniti Technologies, released their entire 6.83% stake in the company.Sapna P. and Venkata Subramanyam Chakkilam, one of the promotors for Cigniti Technologies, also offloaded their shares.A total of 46.18 lakh shares of Cigniti were sold by Kukunuru Madhava Lakshmi, Kukunuru Kumar Bapuji, Sapna, and Chakkilam at the same price, which is 1398.5 rupees per purchase share price for Coforge Ltd. On July 4th, an 11% stake was already added by Coforge Ltd. for 426 cores so now they have a total 28% stake in  Cigniti Technologies. The board of Coforge Ltd. in the month of May approved taking the 54% stake in Cigniti Technologies and as per that, right now they have a 28% stake in the firm.

Share price jumps 1% for Coforge Ltd.

The stock price is going higher for Coforge after their holding increase in Cigniti Technologies, and till now they have a 28% stake and can get into the board of directors once they acquire a 54% shareholding, as this massive block deal helps Coforge Ltd. expand more in the foreign countries where Cigniti Technologies has an established business.

All about Cigniti Technologies:

Cifniti Technologies started on September 3, 1998, and provides engineering services in the following countries: USA UK, Australia, Canada, The Czech Republic, South Africa, Singapore. The total delivery support they have from India. For the fiscal year 2023–24, Cigniti Technologies reported a turnover of Rs. 814.47 crore and a profit after tax of Rs. 94.79 crore. The total 54% acquisition will be complete by the end of the 2nd quarter of 2025, with all the conditions and regulatory approvals.

Conclusion: Once this acquisition is completed in the year 2025, it will be great for Coforge Ltd. to take further expansion by using this significant purchase.

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