Cognizant Explores India Secondary Listing to Boost Shareholder Value

Cognizant Technology Solutions, the US-based IT services giant, is considering a secondary listing in India through Indian Depository Receipts (IDRs). This strategic move aims to bridge the price-performance gap with its Indian peers and enhance shareholder value.

Potential India Listing

The company is currently in talks with regulators and authorities to explore this option. Cognizant's management believes that an India listing could broaden its investor base. The firm is evaluating both primary offering and secondary listing options, working closely with legal and financial advisors to engage stakeholders in both India and the United States.

Early Stages and Considerations

It's important to note that the process is still in its early stages, with no final decision made yet. The company has emphasized that any potential listing would be dependent on market conditions and necessary regulatory approvals.

Recent Performance Highlights

Alongside this strategic exploration, Cognizant has reported quarterly results:

Metric	Performance
Organic Growth	4.00% year-on-year
CY2025 Growth Guidance	Raised to 6.00-6.30%
Margins	Improved to upper end of 15.50-15.70% range
Large Deals	Secured six deals valued over $100 million each

Implications for Investors

This potential move by Cognizant could have implications for both current and prospective investors. An Indian listing might provide:

Increased liquidity for the stock
Greater visibility in the Indian market
Potential for improved valuation in line with Indian peers

However, investors should remain cautious as the plan is still in its exploratory phase and subject to various regulatory and market factors.

As Cognizant continues to evaluate this strategic option, stakeholders will be watching closely to see how it might reshape the company's market position and shareholder value proposition.

Cognizant Technology Solutions has reported robust financial results for the third quarter, showcasing growth across all segments and prompting an upward revision of its full-year guidance.

Financial Highlights

Metric	Value	Change
Adjusted EPS	$1.39	+11.2%
Revenue	$5.42 billion	+7.4%
Full-Year Revenue Guidance	$21.05-21.10 billion	Raised

Segment Performance

Cognizant's growth was driven by strong performance across all its business segments:

Segment	Revenue	Growth
Products and Resources	$1.38 billion	+13.0%
Financial Services	$1.58 billion	+6.2%
Healthcare	$1.60 billion	+5.9%
Communications, Media, and Technology	$850 million	+4.2%

CEO Ravi Kumar S highlighted this as the fifth consecutive quarter of year-on-year organic revenue growth and the strongest sequential growth since 2022, underscoring the company's consistent performance.

Strategic Developments

Cognizant has made significant strides in its business development efforts:

Signed six major deals during the quarter
Year-to-date total of 16 deals, representing a 40% increase in total contract value
Added 6,000 employees, bringing the total headcount to 349,800

Shareholder Returns

The company has declared a quarterly dividend of $0.31 per share.

Future Outlook

Cognizant has raised its constant currency revenue growth guidance to 6.0%-6.3%, signaling confidence in its growth prospects.

The strong quarterly performance, coupled with an optimistic outlook, positions Cognizant favorably in the competitive IT services landscape. The company's ability to grow across all segments and secure major deals indicates resilience and adaptability in a dynamic market environment.