This midcap IT stock to soon announce its first stock split: Check details
For understanding, say the stock’s face value is Rs.10, and there is a 1:2 stock split, then the face value will change to Rs 5. If you owned one share before the split, you would now own two shares after the split.
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Coforge- the midcap IT giant in its exchange filing on Tuesday (February 25, 2025) announced that the company's board meeting is scheduled to take place on March 4, 2025 to consider stock split.
"the meeting of Board of Directors of the Company is scheduled to be held on Tuesday, March 04, 2025, inter-alia to consider the proposal of alteration in the share capital of the company by sub-division/ split of the existing Equity Shares of the face value Rs. 10/- each, fully paid-up, in such a manner as may be determined by the Board of Directors subject to approval of the shareholders of the Company and any approvals, as may be required under applicable law.," said the company's exchange filing.
This will be the company's first stock split since its listing in August 2024 on the Indian bourses.
Ahead of the announcement, scrip of Coforge ended mildly higher at Rs 7,661.1 per share on the BSE.
What is stock split?
A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. In this the market value of the total outstanding shares of a company remains the same but market value of a single share is reduced in proportion to the no of shares extracted out of a single share.
Thus, although the number of shares outstanding increases by a specific multiple, the total value of the shares remains the same compared to pre-split amounts, because the split does not add any real value.
Coforge's shareholding pattern
FII shareholding in the stock has increased in the December quarter to 42.55 per cent, while among DIIs Motilal Oswal's Motilal Oswal Midcap Fund has an over 8 per cent stake. Besides other DIIs are HDFC Midcap Opportunities Fund, LIC, SBI Large and Midcap Fund and DSP Midcap Fund among others.
Coforge's share price performance
In the last one year, the stock has gained 15 per cent as against Nifty IT's return of just 3 per cent. However, over a 3-year period it has delivered 70 per cent return.
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