Coforge Soars to One-Month High: Exciting Dividend and Stock Split Announcement Sparks Investor Interest

Coforge Ltd. has made a significant announcement, declaring a fourth interim dividend of ₹19 per share, which has triggered a positive response in the stock market. On Tuesday, shares of the company surged nearly 7%, reaching their highest point in over a month following the news of a stock split and dividend declaration. This move is expected to enhance market liquidity and attract more investors.

Stock Split Details

According to the official exchange filing, Coforge’s board of directors has approved a 1:2 stock split. This means that each existing equity share, previously valued at ₹10, will be divided into two new shares worth ₹5 each, fully paid up. The record date to establish the eligibility of shareholders for the stock split has been set for June 4.

Stock Split Highlights:
- Existing shares split from ₹10 to ₹5.
- Record date for eligibility: June 4.
- Market capitalization remains unchanged, but the number of shares will double.

Financial Performance Insights

Coforge reported a 4.6% increase in its revenue, bringing the total to ₹3,409 crore. However, this figure fell short of analysts’ expectations, which projected revenue of ₹3,527 crore. Despite this, the company continues to show resilience in a competitive market.

Stock Market Reaction

Following the announcement, Coforge’s stock price experienced an impressive rise, climbing as high as ₹7,999 per share, marking a peak not seen since April 1. By 9:37 a.m., the stock had slightly cooled off but remained up 2.85% at ₹7,710. In contrast, the NSE Nifty 50 Index saw a marginal decline of 0.01%.

Performance Metrics:
- Stock rose by 6.70% to reach ₹7,999.
- Currently trading at ₹7,710, a 2.85% increase.
- Share price has soared 74.30% in the past year.
- Year-to-date, shares are down 20.33%.
- Trading volume reached nine times the average for the last 30 days, with a relative strength index of 61.

Conclusion

Coforge’s recent dividend announcement and stock split are likely to enhance its market appeal. As the company continues to navigate through the financial landscape, investor confidence seems to be on the rise, evidenced by the positive stock performance. Keep an eye on upcoming reports and market trends that could further influence Coforge’s trajectory in the coming months.