Coforge Launches ₹2,240 Crore QIP for Cigniti Acquisition

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Synopsis:

Coforge Ltd. launches a ₹2,240 crore QIP to finance its acquisition of Cigniti Technologies. The share sale approved earlier, offers a floor price of ₹4,531.40/share, with a potential dilution of up to 8% of equity share capital.

Coforge News Today

Coforge Limited initiates a Qualified Institutional Placement (QIP) to raise funds for strategic ventures, including the acquisition of Cigniti Technologies The company aims to raise up to ₹2,240 crore, following the board's approval in March for a ₹3,200 crore institutional share sale.

ExploreCoforge Limited Share Price

Pricing and Dilution

The floor price for the QIP is set at ₹4,531 per share, at a 5.4% discount to Tuesday's closing price. The indicative issue price ranges between ₹4,531.4 to ₹4,600 per share, resulting in a potential dilution of 7.9% to 8% of pre-outstanding equity share capital.

Additional ReadCoforge Q4 Results

Fresh Equity Shares

Coforge plans to issue between 48.69 lakh to 49.43 lakh fresh equity shares as part of the QIP, aimed at eligible institutional buyers. The fundraising committee will convene on or after May 27 to finalise the issue price and eligible institutions for the QIP.

Managers & Fund Utilisation

IIFL Securities Ltd. and HSBC Securities and Capital Markets (India) Pvt. Ltd. are the Book Running Lead Managers for the QIP. Proceeds from the QIP will be utilised to finance the acquisition of Cigniti Technologies, strengthening Coforge's strategic expansion plans.

Additional ReadCoforge Acquires 54% Stake in Cigniti Tech at ₹1,415 per Share

Cigniti Acquisition Strategy

Coforge plans to acquire up to 54% stake in Cigniti Technologies, followed by integration and subsequent stages of acquisition. The acquisition aims to propel Coforge towards its goal of becoming a $2 billion company by 2027 and enhancing margins by 150 to 200 basis points.

By leveraging the QIP, Coforge strategically positions itself to achieve its ambitious growth targets and reinforce its market presence through strategic acquisitions like Cigniti Technologies.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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