Cigniti Technologies’ share price plunged almost 8 per cent, while those of Coforge climbed over half a per cent in morning trade on BSE on Monday, December 30, after the two companies announced their merger. Cigniti Technologies share price opened at ₹1,755 against its previous close of ₹1,849.70 and dropped 7.8 per cent to the level of ₹1705.70. On the other hand, Coforge share price opened at ₹9,425 against its previous close of ₹9,449.85 and rose 0.70 per cent to ₹9,513.35.
Cigniti Technologies-Coforge merger
In an exchange filing on Saturday, December 28, Cigniti said its board of directors, at its meeting held on December 27, approved its amalgamation with Coforge.
“Pursuant to the proposed scheme, equity shares of Coforge shall be issued to the shareholders of Cigniti, which would be listed on BSE and the NSE,” the company said.
Cigniti is a subsidiary of Coforge which holds 54 per cent of Cigniti’s expanded share capital.
Disclosing the share swap ratio, Cigniti said shareholders will be given one equity share of Coforge of ₹10 each for every five equity shares of Cigniti Technologies of ₹10 each.
In May 2024, the board of directors of Coforge approved the acquisition of a 54 per cent stake in Cigniti Technologies at a per share price of ₹1,415.
Coforge noted that the acquisition would create three new scaled-up verticals – retail, technology and healthcare. Also, it would help it realise its objective of scaling up its presence across South-West, Mid-West and Western US markets.
Both Coforge and Cignit have clocked healthy gains this year.
Cigniti share price has surged 73 per cent this year till the close of the previous session, while Coforge stock has gained 51 per cent.
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