Coforge shares surged nearly 10% in early trade, touching ₹7,924.50, following a 1:5 stock split announcement, two major acquisitions, and a $1.56 billion deal with Sabre Technologies. Investors are now looking at a more liquid and affordable stock, alongside an expanded global footprint. But what does this mean for the company and its shareholders? Let’s break it down.
Coforge’s first-ever stock split: Why does it matter?
A stock split is when a company increases the number of shares by dividing existing ones, making them more affordable for investors. Coforge’s 1:5 stock split means that one share of ₹10 face value will be split into five shares of ₹2 face value each.
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| Details | Value |
| Stock split ratio | 1:5 |
| Existing share face value | ₹10 |
| New share face value after split | ₹2 |
| Total shares post-split | 33.43 crore |
| Stock split record date | To be announced |
Why is Coforge splitting its stock?
The company aims to:
- Increase liquidity by making shares more affordable.
- Attract retail investors, expanding its shareholder base.
- Enhance trading volume, making the stock more active.
How does it impact investors?
- If an investor holds 10 shares at ₹7,500 each before the split, they will have 50 shares at ₹1,500 each after the split.
- The total investment value remains the same, but the stock becomes more accessible to small investors.
Two major acquisitions: Rythmos & TMLabs
Coforge is expanding its global presence with two strategic acquisitions in the US and Australia.
1. Rythmos Inc. (US-based IT services firm)
- Acquisition cost: $30 million upfront, with an additional $18.7 million performance-based payout.
- Expected completion: March 31, 2025.
- Why Rythmos?
- Strengthens Coforge’s data capabilities & cloud engineering.
- Adds airline sector expertise, complementing its travel-tech business.
2. TMLabs Pty Ltd (Australia-based IT services firm)
- Acquisition cost: AUD 20 million upfront, plus performance-based payouts in FY26 and FY27.
- Expected completion: March 31, 2025.
- Why TMLabs?
- Specialises in ServiceNow solutions, a high-growth tech space.
- Expands Coforge’s presence in Australia and APAC markets.
What does this mean for Coforge?
- Enhances service offerings in AI-driven cloud and IT solutions.
- Strengthens travel-tech capabilities, aligning with the Sabre deal.
- Increases revenue opportunities in North America and Australia.
The $1.56 billion deal: A long-term growth driver
Coforge has secured a 13-year partnership with Sabre Technologies, a major US-based travel-tech firm.
Deal highlights:
- Value: $1.56 billion
- Focus areas: Product delivery & AI-driven solutions
- Strategic impact:
- Positions Coforge as a key travel-tech partner.
- Strengthens long-term revenue visibility.
- Aligns with its airline industry expertise gained from the Rythmos acquisition.
Brokerage reactions: Jefferies sees strong upside
Jefferies has maintained a ‘buy’ rating on Coforge, raising its target price to ₹10,350. The brokerage expects the Sabre deal to improve revenue visibility for FY26, leading to an earnings upgrade of 3-5% for FY26-FY27.
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Coforge stock performance: How has it fared?
Despite recent fluctuations, Coforge’s stock has shown strong long-term performance.
| Timeframe | Stock Performance |
| 1-Year Return | +11.83% |
| 6-Month Return | +13.79% |
| 3-Month Return | -17.79% |
| 1-Month Return | -14.81% |
Why did Coforge shares fall in recent months?
- Global IT sector slowdown.
- Weak Q3 results impacting investor sentiment.
- Broader market corrections.
However, with the stock split, acquisitions, and Sabre deal, analysts expect Coforge to regain momentum in FY25.
What should investors do?
For long-term investors:
- The Sabre deal and acquisitions could fuel long-term growth.
- Stock split makes shares more accessible, improving liquidity.
- Jefferies’ ₹10,350 target price suggests a potential upside.
For short-term traders:
- Post-split price adjustments could create buying opportunities.
- Market sentiment will depend on record date announcements.
- Monitor quarterly earnings and execution of new deals.
Final thoughts: Is Coforge a buy?
Coforge’s 1:5 stock split, two strategic acquisitions, and a $1.56 billion Sabre deal signal strong growth potential. The stock split enhances retail investor participation, while the acquisitions strengthen its travel-tech and IT service offerings. Analysts remain optimistic, but execution risks remain.
Investors should watch for further updates on the stock split record date, earnings, and deal progress to make informed decisions.
