Coforge has launched a share placement for qualified institutional buyers late on Tuesday, May 21, CNBC-TV18 reported citing sources. The share sale is intended to raise up to Rs 2,240 crore, for which an approval had already been sought in March earlier this year.
The floor price of the share sale has been decided to be Rs 4,531.40/share, which is at a discount of 5.4 percent to Tuesday's closing price. It is learnt through CNBC-TV18 sources that the indicative issue price for the Coforge QIP is in the range of Rs 4,531-4,600 per share, which will lead to a dilution of up to 8% of equity share capital.
A meeting to finalise the issue price of the share placement to qualified institutional buyers will be held on Monday, May 27, the company informed stock exchanges. CNBC-TV18 learns through sources that Coforge may issue between 48.69 lakh to 49.43 lakh fresh shares, as part of the QIP.
Earlier this month, Coforge had informed that it will acquire a 100 percent stake in Cigniti Technologies within a year, and will start the integration of operations after taking over 51 percent of the company. Coforge would have to shell out close to Rs 2,000 crore for the acquisition.
The share price of Coforge had taken a sharp knock on the day the Cigniti deal and fourth quarter results were announced.
By August, Coforge intends to secure at least 51 percent through, which would then pave the way for subsequent stages of the acquisition. Chief Executive Officer Sudhir Singh told Moneycontrol that the acquisition will “absolutely” complement its European presence as currently operations are very UK-centric.
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