Coforge shares fall after board gives nod to Rs 3,200-crore QIP; what's troubling investors?
Coforge shares faced selling pressure in a weak market on Tuesday, even as Macquarie maintained its 'outperform' call on the stock while maintaining its target at Rs 6,410 per share.
Coforge share price news: Coforge shares fell in a weak market on Tuesday, continuing to fall for a second straight session, after the IT firm's board approved a proposal to raise Rs 3,200 crore through the qualified institutional placement (QIP) route. Foreign brokerage Macquarie said investors could see the potential equity dilution in the company negatively.
Coforge shares fell as much as 2.1 per cent to Rs 5,573.8 apiece in intraday trade on BSE.
How Macquarie views Coforge
The brokerage maintained an 'outperform' rating on Coforge with a target of Rs 6,410, suggesting an upside of 12.6 per cent in the stock from the previous close.
According to the brokerage, the fund-raise by the IT firm could only be for funding acquisitions.
However, it also said that the potential equity dilution of an estimated 8.4 per cent was hypothetical, keeping its price-to-earnings target multiple of 30 x unchanged.
Typically, companies take the QIP route to raise funds for reasons such as debt repayment or funding of mergers and acquisitions.
According to Zee Business research, Coforge's debt stood at Rs 943 crore, as of September 2023.
The company may also expand in regions such as Europea, Australia, and Europe, Middle East, and Africa (EMEA).
Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
lok-sabha-elections-2024-final phase-7 voting-date-last day to vote general election timings-states-seats-key-candidates-constituencies-ls-polls-general-election-schedule-time-table-results-date
From Axis to IDFC First - These bank stocks can give bumper returns in 3-4 weeks – Check target price and stop loss
Rules Changing from June 1: Aadhaar card update, driving license, LPG price and others - Check Full List
Central Railways' 63-hour mega block to hit Mumbai local train services, check dates and other details
SBI Senior Citizen FD Interest Rates 2024: What Rs 2 lakh, Rs 4 lakh, and 6 lakh, and Rs 8 lakh investments will give you in 1-, 3-, and 5-year FDs
Gold and Silver rate today (May 30, 2024): Precious metal futures trade in red; yellow metal near Rs 72,000, white metal falls by nearly Rs 1,500
02:45 PM IST