Coforge Shares in Focus; Approves Amalgamation with Cigniti Technologies

Coforge Ltd. has approved the Scheme of Amalgamation with Cigniti Technologies, involving a 1:5 share swap ratio. The transaction is subject to regulatory approvals, including from SEBI and stock exchanges, the company said in a press release on the stock exchanges.

Merger Terms and Regulatory Approval

As of December 27, 2024, Coforge holds 54% of the share capital of Cigniti. The share swap ratio was determined based on joint reports by PwC Business Consulting Services LLP and KPMG Valuation Services LLP, along with fairness opinions from JM Financial Limited and Axis Capital Limited.

The transaction is subject to the approval of regulatory authorities, including the Securities and Exchange Board of India (SEBI), stock exchanges, and the National Company Law Tribunal (NCLT). Coforge aims to enhance its capabilities in the global market, especially focusing on digital transformation and AI-driven assurance services.

Merger to Drive Synergies and Operational Efficiency

The amalgamation is expected to create synergies between the two companies, particularly in the fields of AI, digital engineering, and assurance services. The combined entity will offer more comprehensive services across multiple sectors, including retail, technology, and healthcare.

Furthermore, the merger will enable greater operational efficiency, improved customer offerings, and enhanced cash flow management.

Coforge also aims to simplify its corporate structure and improve financial management through the merger. The Scheme is expected to be finalized upon receiving all necessary approvals.

Share Price Performance

On December 30, 2024, Coforge share price traded 0.46% lower at ₹9407.80.94 at 10:30 AM on the NSE. The stock opened at ₹9,390.10 against 9,451.10 at the previous close. Meanwhile, Cigniti Technologies share price traded 6.27% lower at ₹1,733.50 on the NSE.

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