Coforge shares jump 7% intraday as company gears to list on US exchange
The company, which was formerly known as NIIT Technologies, is been backed by Barings Private Equity Asia that will sell part stakes in the proposed transaction.
The shares on mid-cap IT company Coforge jumped nearly 7 per cent to touch the day’s high of Rs 5874.95 per share on the BSE intraday trade on Tuesday. The surge in the stock is mainly because the company has filed papers with the US Securities Exchange Commission (SEC) for the initial share sale.
The company in its filing on Tuesday has said that the board has approved the IPO in the US markets and it would be done through the American Depository Receipts (ADR) route.
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The company, which was formerly known as NIIT Technologies, is been backed by Barings Private Equity Asia that will sell part stakes in the proposed transaction.
While releasing its quarterly results, Coforge in its filing said that it had filed a Form F-1 registration statement with the US regulator, as the company’s board of directors had approved New York Stock Exchange (NYSE) as the selected stock exchange for the ADR offer.
The company in its filing has also mentioned that the shareholders interested in participating in the ADR offer, can indicate their interest between November 18 and December 2, 2021.
Generally, ADRs are stocks that trade on US indices, however, represent shares in a foreign firm. They give an opportunity to American investors to invest in global companies. The Indian companies such as Infosys and ICICI Bank are also listed in the US markets through ADR route.
JP Morgan, Citi, Barclays, Bank of America Securities, Credit Suisse, Evercore and Deutsche Bank are the lead investment banks working on the deal for Coforge, according to SEC documents.
After hitting a day’s high level in the early morning trade, the stock has been trading around 3 per cent higher to Rs 5651.5 per share on the BSE, as compared to 0.24 per cent declined in the S&P BSE Sensex at around 10:50 am on Tuesday.
(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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