Shares of Cigniti Technologies were trading over 6% lower on December 30, days after the company announced the merger swap ratio of 1 share of Coforge for every 5 shares of Cigniti Tech.
Share swap transaction will lead to 4% dilution in Coforge equity shares.
The merged entity will create 3 new scaled-up verticals- Retail, Technology, and Healthcare.
At 11 am on December 30, Cigniti Tech shares were trading 6.5% lower at Rs 1,729 apiece. The market capitalisation of the stock is Rs 4,720 crore. Its 52-week low is Rs 942.1 and 52-week high is Rs 1,970.
Meanwhile, shares of Coforge were trading 0.45% higher at Rs 9,495 apiece.
The boards of both companies approved the merger plan at their respective meetings on December 27, according to separate regulatory filings.
Cigniti is in the business of Quality and Digital engineering services for global clients, with a delivery centre in India. It recorded a turnover of Rs 814.47 crore for FY24, and profit after tax of Rs 94.79 crore.
Coforge acquired Cigniti to expand its capabilities in digital assurance and engineering services in the retail, healthcare, and hi-tech verticals. It aims to grow the revenue to $2 billion by FY27 by leveraging Cigniti's expertise, while also improving operating margins through synergies between the two companies. The acquisition allows Coforge to ramp up its client base and enter new segments.
The acquisition of Cigniti is expected to expand Coforge’s North America revenue by about 33%, the company had said.
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