Coforge Stock Slips 3.5% Ahead of Board Meeting

14 Mar 2024 , 11:19 AM

Coforge’s stock fell 3.5% in early trade on March 14 following the announcement by the IT services provider that its board will convene on March 16 to discuss strategies for raising capital.

If authorised, the money will be raised by issuing equity shares or any other eligible securities through legal channels, such as private placements, institutional placements, preferential issues, or any other legal means or combination of legal means that may be allowed by the relevant laws.

Coforge was trading on the NSE at ₹6,053.20 at 11:14 a.m.

The company recently made headlines when it announced that it was abandoning its intentions to make a $750 million US initial public offering. Although the company has not revised its prospectus since July 2022, it had filed for a US IPO in November 2021.

The company announced earlier this month in an exchange filing that its board of directors had decided not to proceed with the plan to offer American Depository Receipts.

The main goals of this offering are to make our American depositary shares (ADS) available to the public and to make it easier for us to access the public equity markets in the future. The selling shareholders will be the ones selling all ADSs in the offering. According to Coforge’s offer document, “We will not receive any of the proceeds from the sale of the ADSs in this offering.”

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