COFORGENSECoforge LimitedHighPositive
Announced Fri, 1 May · 24:24 IST

Coforge Limited has informed the Exchange about Pronouncement of order approving Scheme of Amalgamation under sections 230 to 232 of the Companies Act, 2013 by the Hon ble National Company Law Tribunal, Chandigarh Bench ( NCLT )

Listed Co AcquisitionNclt Scheme FiledStrategic Transactions View source PDF

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Price reaction · full curve 14 horizons · vs prior close
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₹1197.10
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AI summary

The Hon'ble NCLT Chandigarh Bench has approved the merger of Cigniti Technologies Limited (Transferor Company) into Coforge Limited (Transferee Company) with appointed date April 01, 2025. Under the approved share exchange ratio, Cigniti shareholders will receive 1 equity share of Coforge (face value INR 2) for every 1 share held in Cigniti (face value INR 10). The Scheme received overwhelming stakeholder approval including 99.95% by value from Cigniti shareholders and 100% from Coforge shareholders. Coforge already held 54% stake in Cigniti acquired between October-December 2024 for approximately INR 10,239 million. The combined entity will have $2.5 billion revenue with $2 billion core of AI-led Engineering, Data and Cloud services.

Likely market impact

Coforge shareholders should benefit from the successful integration, with Cigniti's EBITDA margins having already expanded from 11% to 19% in five quarters post-acquisition. Cigniti shareholders will receive Coforge shares as per the 1:1 exchange ratio once the scheme becomes effective and listing approvals are obtained.