Coforge Ltd has recently made headlines with an important announcement that could significantly impact its shareholders. After a board meeting on May 5, the company declared June 4, 2025, as the record date for its upcoming 1:2 stock split. This strategic move aligns with the release of the company’s financial results for the March quarter, signaling a commitment to enhancing liquidity and attracting a wider range of investors.

Stock Split Details

Coforge has officially set Wednesday, June 4, 2025, as the date to determine which shareholders are eligible for the stock split. According to their regulatory filing, one existing equity share with a face value of ₹10 will be divided into two shares valued at ₹5 each, maintaining equal standing in all aspects. This approach is designed to make shares more accessible to retail investors, potentially broadening the company’s shareholder base.

Purpose of the Stock Split

The rationale behind this stock split is straightforward: to improve the liquidity of Coforge’s equity shares. Here are some key points about stock splits:

• Enhances affordability: Lower face value allows more investors to buy shares.
• Increases tradability: A larger number of shares can lead to increased trading activity in the market.
• No impact on market capitalization: The overall value of the company remains unchanged, despite the increase in share count.

Investors who hold shares on the record date will find the additional shares credited to their demat accounts. Following the split, the share price will be adjusted in accordance with the split ratio, ensuring that the total investment value remains intact.

Coforge’s Q4 FY25 Performance

In conjunction with the stock split announcement, Coforge revealed its financial performance for the fourth quarter of FY25. The company reported a 17% year-on-year increase in consolidated profit after tax (PAT), totaling ₹261 crore, compared to ₹223.7 crore in the same period last year.

• Revenue growth: The company’s revenue surged by 47% year-on-year, reaching ₹3,409.9 crore in Q4 FY25, up from ₹2,318.4 crore the previous year.
• Constant currency figures: In constant currency terms, revenue growth was 43.8%, while in USD terms, it stood at 43.6%.

Additionally, Coforge’s board announced a fourth interim dividend of ₹19 per equity share along with the quarterly results, reinforcing its commitment to providing returns to its investors.

Upcoming Dividend Information

Coforge also set May 12, 2025, as the record date for shareholders eligible for the upcoming dividend payout. This proactive approach demonstrates the company’s intention to reward its investors while implementing strategies that enhance shareholder value.

Coforge’s recent actions, including the stock split and robust quarterly performance, highlight its position as a growing entity in the IT sector, aiming to attract new investors and retain existing ones.