Coforge Limited has issued a clarification statement regarding speculative news reports while also providing corrections to its preferential share allotment disclosure details. The IT services company addressed media speculation and updated shareholding information for strategic investors.

Clarification on Speculative News Reports

Coforge issued an official statement on December 26, 2025, addressing speculative news items that appeared on Moneycontrol. The company clarified that the referenced news was premature and not based on any official information or communication from the company.

The company confirmed that prior to the publication of the news, there was no event or development that obligated disclosure to stock exchanges under Regulation 30 of SEBI Listing Regulations. All relevant disclosures were made following the conclusion of the Board meeting on December 26, 2025.

Disclosure Correction for Preferential Issue

Coforge has issued an important correction to its earlier Board Meeting outcome disclosure regarding the preferential share allotment. The correction specifically addresses Part 4 of Annexure C under the "Preferential Issue of Equity Shares" section, revising post-merger shareholding details for strategic investors.

The company clarified that all other details regarding the preferential allotment remain unchanged, with the correction focusing solely on post-merger shareholding calculations.

Major Preferential Share Allotment

The centerpiece of the postal ballot involves a substantial preferential share issuance worth ₹1,703.26 crores. The company proposes to allot equity shares to two strategic investors through a share swap arrangement.

The issue price has been determined at ₹1,815.91 per equity share, including a premium of ₹1,813.91, based on SEBI ICDR Regulations pricing formula.

Corporate Communication

The clarification statement was signed by Barkha Sharma, Company Secretary & Compliance Officer, and submitted to both BSE Limited and National Stock Exchange of India Limited. The company emphasized its commitment to transparent communication and regulatory compliance.

Coforge Ltd. has received board approval to raise up to $550 million through a qualified institutional placement (QIP), following the crucial board meeting that concluded recently. The IT services company had earlier announced this board meeting for Friday, December 26, which generated significant market attention and impacted the stock's performance with shares declining 7% over two trading sessions leading up to the meeting.

Fund Raising Approval Details

The board has approved the fundraising proposal that was under consideration, with the company now authorized to proceed with raising up to $550 million through the QIP route. This development comes after the company scheduled both the board meeting and an analyst meet, indicating the significance of the proposed fund raising initiative.

Previous Fund Raising History

This marks the second major fund raising by Coforge within the last 18 months. The company previously raised ₹2,240.00 crore through a qualified institutional placement to eligible institutional buyers, specifically to fund the acquisition of Cigniti Technologies.

Note: The previous issue price is not adjusted for the stock split conducted earlier this year.

Growth Strategy and Financial Position

Coforge currently maintains negligible cash reserves on its balance sheet while pursuing ambitious growth targets. The company is working toward achieving a $2 billion revenue run-rate over the next few quarters. During its previous analyst meeting, management assured stakeholders that no additional data center investments would be included in the current offering.

Market Performance and Investor Sentiment

The stock had experienced pressure ahead of the board meeting, with investor concerns centered around potential equity dilution. Market sentiment had turned cautious since the initial announcement, reflecting broader concerns about the company's financial strategy.

The approval of the $550 million fund raise provides clarity on the company's capital allocation strategy and funding requirements for its growth plans. The funds raised through this QIP will likely support the company's expansion initiatives and help achieve its targeted revenue run-rate goals.