Coforge Acquires 20% Stake in Coforge Business Solutions for Rs 337 Cr
In a significant move, Coforge Ltd, an IT company, has announced the acquisition of a 20 percent stake in Coforge Business Process Solutions Private Ltd for a total of Rs 336.94 crore. This acquisition adds to the company’s strategic investments and expansion plans.
The acquisition of 60 percent of the total issued and paid-up share capital of Coforge Business Process Solutions took place on April 12, 2021, and April 28, 2021. Coforge ensured that the acquisition was formally approved by the Audit Committee and the Board in April 2021, emphasizing compliance and due diligence.
Coforge stated in an official exchange filing, “This acquisition represents an incremental purchase of equity in accordance with the agreed terms and conditions of the shareholder’s agreement.” The company aims to capitalize on the opportunities presented by this strategic investment.
Coforge Business Process Solutions, on a consolidated basis, reported a turnover of Rs 649 crore for the fiscal year ending on March 31, 2023. The financial performance of Coforge Business Process Solutions, as per Ind AS, over the past three fiscal years (FY2021, FY2022, and FY2023) demonstrated revenues of Rs 546 crore, Rs 679 crore, and Rs 649 crore, respectively.
However, in the latest financial report, Coforge’s consolidated net profit for the March quarter stood at Rs 116.7 crore, marking a 48.08 percent decline compared to Rs 224.8 crore in the corresponding period last year. On the other hand, revenue from operations witnessed a positive trend, reaching Rs 2,170 crore, indicating a 24.50 percent increase from Rs 1,742.9 crore in the same quarter of the previous year.
Following this news, the shares of Coforge Ltd concluded trading on the BSE at Rs 4,525.40, experiencing a decrease of Rs 79.25 or 1.72 percent.
This strategic investment by Coforge signifies its commitment to expanding its business operations and leveraging new opportunities in the market. The acquisition of a stake in Coforge Business Process Solutions is anticipated to contribute positively to Coforge’s growth trajectory in the coming years.
Coforge, previously recognized as NIIT Technologies, is an Indian global information technology corporation headquartered in Noida, India, with additional operations in New Jersey, United States. The company’s shares are listed and traded on the Bombay Stock Exchange and the National Stock Exchange of India using the ticker symbol Coforge.
For more of the Latest News, Click Here