Coforge Shares Jump 6% After Two Acquisitions, $1.6 Billion Deal, and 1:5 Stock Split Approval

Shares of Coforge surged over 6% on March 5, following two major acquisitions, a long-term deal worth $1.6 billion, and the approval of a stock split.

Shares of Coforge traded at Rs 7,658.60 on NSE at 9:20 am, 6.2% higher from the closing.

Key Announcements Driving the Stock Rally

$1.6 Billion Deal with Sabre Technologies
Coforge signed a 13-year agreement with US-based Sabre Technologies to deliver product and AI solutions. The deal strengthens Coforge’s position as a key technology partner in helping Sabre accelerate product delivery and AI-driven innovations.
Acquisition of TMLabs
Coforge will acquire TMLabs, an Australia-based ServiceNow platform implementation company, for 20 million Australian dollars upfront, with additional payments based on performance in FY26 and FY27.
Acquisition of Rythmos
Coforge is acquiring Rythmos, a company with expertise in data analytics and cloud engineering for the airline industry. The deal involves an upfront payment of $30 million, with an earnout of up to $18.7 million, depending on revenue and EBITDA targets for 2025 and 2026.
1:5 Stock Split Approval
The company’s board has approved a stock split, where each Rs 10 share will be split into five shares of Rs 2 each. The move aims to increase liquidity and attract more investors. The record date for the stock split will be announced later, and the process is expected to be completed within three months, subject to shareholder approval.

Analysts Remain Bullish on Coforge

Global broker Jefferies upgraded the ‘buy’ recommendation on Coforge to Rs 10,350. The broker highlighted that the acquisition of $1.6 billion improves FY26 revenue visibility, improves the travel technology segment of Coforge, and improves the chances to capture larger deals. It upgraded FY26-FY27 earnings estimates 3%-5%.

By securing strong deal wins, acquisition, and stock split, Coforge is making a move to grow in the long run. Investors will be keenly observing the deals’ implementation and future financial performances to ascertain future stock behavior.

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_{^{Source: Moneycontrol.}}