Coforge shares in focus today as firm completes stake acquisition in Cigniti Technologies

Shares of Coforge Ltd are in news today afer the mid tier IT firm said it has completed the acquisition of 54% stake in Cigniti Technologies. On Friday, the IT stock hit its record high of Rs 9798.60. Later, the stock saw profit-booking and closed 2.99% lower at Rs 9369.55 on BSE. Market cap of the firm fell to Rs 62,644 crore.

A total of 0.13 lakh shares of the firm changed hands amounting to a turnover of Rs 12.44 crore. Shares of Coforge fell to a 52 week low of Rs 4291.05 on May 9, 2024.

With the current leg of rally, the IT stock has turned overbought on charts with a RSI of 90.8. This signals there were more buyers than sellers for the stock in the current session. 

Coforge shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages, which indicates the momentum is bullish both in long and short term.

"Accordingly, the company has acquired an aggregate of 1,48,75,357 equity shares amounting to 54% of the expanded voting share capital of Cigniti," said the firm.

"Wherein we had informed that the Company has acquired an aggregate of 89,20,731 equity shares amounting to 32.68% of the total paid-up share capital of Cigniti, we would further like to inform that the Company has completed the final tranche closing on December 20, 2024, through an off-market transaction pursuant to which the Company has purchased additional 59,54,626 equity shares amounting to 21.62% of the expanded voting share capital of Cigniti. Accordingly, the Company has acquired an aggregate of 1,48,75,357 equity shares amounting to 54% of the expanded voting share capital of Cigniti," said Coforge.

Coforge Limited is an India-based information technology (IT) solution company. It is engaged in the in-application development and maintenance, managed services, cloud computing and business process outsourcing. The Company provides computer programming consultancy and related activities.