Coforge shares gained nearly 2% as they started trading ex-split on June 4, 2025, after a 1:5 stock split. Learn about the split, its impact, and the company’s strong financial performance.
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Coforge, a leading IT company, saw its share price rise by up to 1.8% to Rs 1,730 on the Bombay Stock Exchange (BSE) on Wednesday, June 4, 2025. This increase came as the stock began trading ex-split for the first time after the company’s first-ever stock split in a 1:5 ratio. Let’s break down what this means and why it matters.
What is a Stock Split?
A stock split is when a company divides its existing shares into smaller units to make them more affordable for investors. For Coforge, each share with a face value of Rs 10 was split into five shares, each with a face value of Rs 2. This move increases the total number of shares but doesn’t change the company’s overall market value.
Why do companies do this?
A stock split makes shares cheaper, which can attract more investors and improve market liquidity—meaning it’s easier to buy and sell shares.
How the Ex-Split Trading Works
Coforge set June 4, 2025, as the record date to decide which shareholders would receive the new, split shares. If you owned Coforge shares before this date, you’d get five shares for every one you held.
However, starting June 4, the stock began trading ex-split. This means:
- The share price now reflects the split (lower price per share).
- If you buy the stock on or after June 4, you won’t get the extra shares from the split.
Because India follows a T+1 settlement cycle (where trades settle one day after purchase), you needed to buy the shares at least one trading day before June 4 to qualify for the split.
Coforge’s Strong Financial Performance
Coforge isn’t just making headlines for its stock split. The company reported impressive financial results for the quarter ending March 2025:
- Profit Growth: Profit after tax grew by 17% to Rs 261 crore, up from Rs 223.7 crore a year ago.
- Revenue Surge: Revenue from operations soared by 47% to Rs 3,409.9 crore. In US dollars, revenue grew by 43.6%.
- Big Deals: Coforge signed five major contracts worth $1.56 billion, boosting its order book to $1.5 billion—a 47.7% increase from last year.
The company also announced a fourth interim dividend of Rs 19 per share, rewarding its investors further.
Why This Matters for Investors
This is Coforge’s first stock split since it became a publicly traded company, according to Trendlyne data. The split makes the stock more accessible to smaller investors, potentially increasing demand. Plus, the company’s strong financial growth and large contract wins signal a bright future.
Final Thoughts
Coforge’s stock split and solid financial results show the company is on a growth path. The 2% rise in share price reflects investor confidence, and the split could make the stock more attractive to new buyers. If you’re an investor, keep an eye on Coforge as it continues to perform strongly in the IT sector.
