Coforge Board approves raising ₹3,200 Crore in funding

18 Mar 2024 , 10:37 AM

The board of the IT services provider Coforge has approved the possible offering of equity shares or other suitable securities with a maximum fundraising amount of ₹3,200 Crore.

The choice was made in response to the company's decision to shelve preparations for an American IPO of $750 Million.

The business stated in an exchange statement on March 16 that the avenue for funding includes qualified institutional placement (QIP) or any other legal modalities that are allowed, subject to the necessary permissions, including those from shareholders and regulatory organisations.

At its meeting on March 16, the board gave a fund-raising committee the authority to specify the parameters of the planned fundraising.

In the event that the plan is accepted, Coforge will raise money in a number of ways, such as through preferential issuance, QIP, private placement, or any other means permitted by current laws.

The company cancelled preparations for a $750 Million initial public offering (IPO) in the US in the wake of recent events, which prompted the decision.

After starting its IPO process in November 2021, Coforge put it on hold and hasn't updated its prospectus since July 2022.

Coforge's NSE price at 9.43 am was ₹5,853.25, down 4.30% from the previous close.

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