Motilal Oswal-backed IT stock Coforge Ltd to mull stock split
In a move that is likely to delight investors, Coforge Ltd, a global IT solutions provider backed by Motilal Oswal, is set to consider a stock split. The company’s board of directors will meet on March 4, 2025, to discuss subdividing its existing ₹10 face value shares, subject to shareholder and regulatory approvals. This news comes as a welcome respite for investors, who have been eagerly awaiting a decision on the stock split.
As one of India’s leading IT firms, Coforge has a strong track record of delivering value to its shareholders. With a market capitalization of over ₹10,000 crore, the company has been on a roll, driven by its impressive order book and strong client relationships. In fact, Coforge’s order book stands at a whopping $1,365 million, making it a true blue-chip stock.
So, what’s behind the decision to consider a stock split? In simple terms, a stock split is a corporate action that involves dividing a company’s existing shares into a larger number of shares with a lower face value. This can make the stock more attractive to investors, particularly retail investors, who may be deterred by the high face value of the shares.
In Coforge’s case, the company’s existing ₹10 face value shares may be subdivided into smaller shares with a lower face value, such as ₹5 or ₹1. This could make the stock more accessible to a wider range of investors, potentially increasing its liquidity and trading volume.
Motilal Oswal Midcap Fund, which holds an 8.06% stake in Coforge, is likely to be a key player in the company’s decision-making process. As a significant shareholder, the fund may have a strong incentive to back the stock split, given its potential to boost the stock’s liquidity and trading volume.
Coforge’s impressive order book is another key factor driving the company’s decision to consider a stock split. With a strong pipeline of orders from clients like British Airways and ING Group, the company is well-positioned to continue delivering growth and value to its shareholders.
The stock split decision is likely to be a closely watched event, given the significant interest in Coforge’s shares. The company’s stock has been a consistent performer, with its share price rising by over 50% in the past year alone. A stock split could further boost the stock’s appeal, potentially attracting new investors and driving up its trading volume.
In conclusion, Coforge Ltd’s decision to consider a stock split is a positive development for investors, particularly those who have been waiting for a catalyst to drive the stock’s growth. With its impressive order book and strong client relationships, the company is well-positioned to continue delivering value to its shareholders. As the board of directors meets on March 4, 2025, to discuss the stock split, investors will be eagerly awaiting the outcome.
