Coforge Ltd, a prominent midcap IT services firm, caught investor attention on June 4, 2025, as its stock appeared to plunge nearly 80% in early trade. The sharp drop sparked confusion and concern. But the reality is far from negative. The drastic price adjustment was a technical adjustment due to a stock split.
Coforge traded ex-split today, June 4, with its equity shares being subdivided in a 1:5 ratio. This means each share of ₹10 face value has now been split into five shares of ₹2 each, effectively increasing the number of outstanding shares while reducing the per-share price accordingly. This move aims to improve liquidity and make the stock more accessible to retail investors.
The split is a significant milestone for Coforge, as it's the first share split since the company’s listing in August 2004.
On Wednesday, Coforge shares opened at ₹1,720.05, sharply lower from the previous day’s close of ₹8,499.5. On the surface, this appeared to be a near 80% fall and a drop below the 52-week low after a 1:5 split. In fact, the adjusted opening price even reflected a modest gain of 0.60%, as the stock was seen trading around ₹1,710 post-adjustment.
This scenario highlights a common source of confusion among retail investors who may not be familiar with how corporate actions like splits affect stock prices visually on trading platforms.
June 3, 2025, served as the record date for shareholders to be eligible for this corporate action. Coforge operates under a T+1 settlement cycle, meaning shares bought on June 3 qualified for the split. Those holding the stock as of the record date will now see their holdings multiplied fivefold, with the total investment value remaining unchanged.
In a May 5 filing, the company stated:
“The company has fixed Wednesday, June 4, 2025, as the 'Record Date' for determining the entitlement of equity shareholders for the purpose of subdivision/split of existing equity shares, ranking pari passu in all respects.”
The stock split news comes on the back of a solid Q4 FY25 earnings report. Coforge posted a 34% YoY rise in consolidated net profit, reaching ₹261.2 crore for the March quarter. While rupee revenue came in at ₹3,409.9 crore, slightly below expectations, the earnings reflect overall strength and consistent growth in the company’s financials.
What seemed like a price crash in Coforge shares was, in fact, a planned and technical stock split that has no bearing on the company’s fundamental value. With strong quarterly earnings and a move aimed at boosting liquidity, the stock split serves as a strategic initiative to attract broader investor participation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 4, 2025, 10:22 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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