Coforge Ltd Board Approves ₹3,200 Crore Fundraising

Coforge Ltd, previously known as NIIT Technologies, stated in an exchange filing that the company’s board had approved the raising of funds.

Details of the Fundraising 

On March 16, 2024, Coforge Ltd held a board meeting where the company’s board approved the raising of funds through a Qualified Institutional Placement (QIP), which means issuing shares to eligible institutional shareholders. The company will raise funds by way of issuance

of equity shares having a face value of ₹10 each of the company for an aggregate amount not exceeding ₹3,200 crore.

The details of the QIP, pricing and dates are yet to be determined.

In June 2023, Coforge Ltd laid out the company’s roadmap to achieve $2 billion in revenue by the financial year 2028, which will be double the $1 billion it achieved in the previous financial year, i.e., in the financial year 2023.

On January 23, 2024, the CEO and Executive Director of Coforge Ltd, Sudhir Singh, stated that the company will achieve its financial year 2024 growth guidance of 13% to 16%.

In November 2021, Coforge Ltd filed for a $750 million initial public offering (IPO) in the United States. However, the company has not updated its prospectus since July 2022 and withdrew its IPO plans.

About Coforge Ltd

Coforge Ltd is an IT services company that provides end-to-end software solutions and services. The company is one of the top 20 Indian software exporters. Their customer base includes prominent players like the ING group, British Airways, Sabre, SEI Investments, and SITA. Over the years, Coforge Ltd has established subsidiaries in the US, Australia, Singapore, Germany, the UK, and Thailand, primarily to market and mobilise projects for the software division. In the first nine months of the financial year 2024, the company reported a net profit of ₹697.70 crore, which is approximately 42.01% higher than the net profit of ₹491.30 crore during the same period last year.

On March 18, 2024, the share price of Coforge Ltd opened at ₹6,045.15, which is the day’s high as well, as of 10:12 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.