Coforge picks up additional 16.92% stake in Cigniti Technologies

8 Jul 2024 , 01:13 PM

Coforge Ltd, a digital services and solutions provider, announced on Friday (July 5) that it has grown its investment in Cigniti Technologies Ltd. Coforge acquired 4,618,199 equity shares, representing 16.92% of Cgniti’s current paid-up share capital and 16.76% of the expanded capital.

The acquisition cost ₹1,398.50 per share, excluding transaction charges, and was financed with cash. The deal is not a related party transaction, and none of Coforge’s promoter group firms has an interest in Cigniti.

This purchase was completed through an on-market transfer on the stock exchange, in accordance with the Share Purchase Agreement signed by Cigniti’s promoters and chosen public shareholders.

With this acquisition, Coforge now owns 7,639,492 equity shares, or 27.98% of Cigniti’s current paid-up share capital and 27.73% of its expanded capital.

Cigniti Technologies, founded on September 3, 1998, offers engineering services and has offices in the United States, the United Kingdom, Australia, Canada, the Czech Republic, South Africa, and Singapore, as well as an India-based delivery hub.

In fiscal year 2023-24, Cigniti recorded a turnover of ₹814.47 Crore and profit after tax of ₹94.79 Crore. Coforge has received the requisite clearances from the Competition Commission of India and under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The transaction is scheduled to be finalised by the second quarter of FY25, pending the fulfilment of conditions precedent and regulatory approvals.

Coforge is a global digital services and solutions provider that uses emerging technology and deep subject experience to help its clients achieve real-world business results.

At around 12.33 PM, Coforge was trading 1.15% lower at ₹5,802.80 per piece, against the previous close of ₹5,870.15 on NSE. The counter touched an intraday high and low of ₹5,975.35, and ₹5,752.65, respectively.

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