As many as 60 lakh shares of Coforge, equivalent to 9.8 per cent stake, changed hands through a block deal window on February 13. While the buyers and sellers were not known immediately, it was reported earlier that Hulst BV, an entity controlled by Baring Private Equity, will sell some stake.
Following the block deal, the stock opened 5 per cent lower around Rs 4,100 per share amid heavy volumes.
Sources informed CNBC-Awaaz on February 11 that the base size of the deal would be 4.9 percent, with a greenshoe option to an upsize up to 9.8 per cent.
On the National Stock Exchange (NSE), the stock hit an intra-day low of Rs 4,037. Barings stake in Coforge is now down to 30 per cent from high of 70 per cent in September 2020.
Meanwhile, the IT firm announced earlier today that it has entered into a partnership with Denodo, a leading data integration, management and delivery platform, to enable banks and other financial organizations to engage in agile modernization projects without affecting daily operations.
Under the partnership, Denodo will bring its logical data integration and data management approach, powered by data virtualization, while Coforge will bring its design and implementation expertise at BFSI clients, enabling companies to overcome challenges like security, compliance, systemic risks, downtime, and data migration quality.
“This forward-thinking alliance will enable us to better address the needs of our clients, providing them with easier access to vital data sources and greater flexibility in data virtualization efforts. We believe the partnership will bring together Denodo’s fine technical expertise and Coforge’s deep domain driven design thinking and implementation prowess,” said Deepak Khetpal, executive vice president and global head of data and analytics, Coforge.
In Q3FY23, the mid-tier IT services firm reported a 24.2 per cent year-on-year (YoY) rise in net profit at Rs 228.20 crore. On a sequential basis, the profit increased 13.5 per cent. Revenue for the quarter stood at Rs 2,055.80 crore, up 24 per cent YoY and 5 per cent QoQ.
Global brokerage Nomura recently initiated coverage on the company with a ‘Buy’ rating and a target of Rs 5,050.
“A rejuvenated and stable management team with strong execution and a deepening focus on existing businesses while incubating new verticals, alongside the realignment of Go-To-Market (GTM), reinvigorating sales engine with strong incentive structures and a focus on M&A to bolster capability have been some key factors behind Coforge’s strong growth and re-rating. We believe Coforge will continue to outperform with 25 per cent EPS CAGR over FY23-25F,” it said in its report dated February 7.
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