Coforge share price came under sharp selling pressure on Tuesday after reports emerged that the company’s board would meet on December 26 to consider a fresh fundraising proposal, triggering fears of potential dilution.
Shares of the IT services firm fell as much as 7% intraday, hitting a low of ₹1,739, their weakest level since November 10. The stock was trading around ₹1,791, sharply lower from Monday’s closing price of ₹1,868, reflecting heightened investor caution.
The decline in Coforge share price was largely driven by negative sentiment around a possible capital raise. While the company has not yet disclosed the structure or size of the fundraising, news reports suggest that investors were concerned it could be dilutive, especially in the absence of large capex requirements or one-off funding needs.
Coforge had last raised funds in May 2024, when it mobilised ₹2,240 crore to finance the acquisition of Cigniti Technologies. At the time, management highlighted acquisitions as a core growth strategy.
Investors have raised doubts about Coforge’s earlier guidance of achieving 70% cash flow conversion. With no major capital expenditure plans in sight, the need for another fundraising round (so soon after the last one) has come into question, adding to concerns around cash flow visibility.
Earlier, Coforge had announced an interim dividend of ₹4 per equity share for FY26, but the announcement failed to provide meaningful support to the stock amid broader concerns around capital allocation and dilution.
Despite near-term pressure on Coforge share price, the company maintained its long-term growth narrative. Management had guided for US$2 billion in revenue by FY27, with acquisitions continuing as a key growth pillar.
The company also reiterated its confidence in the Cigniti acquisition, describing it as one of its most strategically sound decisions in recent years.
Read more: Ather Energy to Raise Scooter Prices by Up to ₹3,000 From January 1, 2026.
Going forward, investors with a Demat account should watch for further details from Coforge. This includes its fundraising size and structure and the intended use of proceeds. Whether the company shares an updated cash flow guidance at the December 26 board meeting remains yet to be seen.
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.
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Published on: Dec 23, 2025, 10:19 AM IST
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