Coforge Shares Tumble 7% as Board to Mull Fund Raise via QIP on December 26: Check Details

Shares of Coforge experienced selling pressure on Wednesday, falling over 7% in intraday trade, after the IT major informed exchanges that its board will meet later this week to consider raising funds through QIP and other routes.

The stock opened at Rs. 1,847 and slipped to an intraday low of Rs. 1,739.30, down as much as 7.4% during the session. At the time of writing, coforge shares were trading at Rs. 1,790.70, lower by 4.17%.

In an exchange filing, Coforge said the board will consider raising funds through, Equity shares, Qualified Institutions Placement (QIP), Private placement, Preferential issue and Any other permissible method under applicable laws
The proposal will be subject to regulatory approvals and shareholder approval, including the possibility of convening an Extraordinary General Meeting (EGM) or postal ballot.

Coforge Share Price Performance

Coforge shares have remained highly volatile in 2025, after multiple ups and downs throughout the year. Despite sharp rallies at times, the stock is still down nearly 6% on a year-to-date basis.

Coforge Q2 Results

Despite the stock weakness, Coforge reported a strong set of Q2 results for the quarter ended September 2025. The company's Net profit stood at Rs. 375.80 crore, up 18% sequentially.

While Revenue for the quarter was recorded Rs. 3,985.70 crore, up 8.1% QoQ. The Operating income (EBIT) came in at Rs. 560.60 crore, up 34% QoQ. The EBIT margin expanded to 14.1% from 11.3%.

Coforge Stock Target Price

Brokerage firm Axis Securities remains positive on the stock despite recent volatility.

In its report, Axis Securities said: "Coforge is well-positioned for growth, given its multiple long-term contracts with leading global brands. While the stock has seen a sharp run-up post Q2 results, its positive outlook, recent deal wins, and AI integration will drive revenue growth."

The brokerage has maintained a BUY rating on Coforge and valued the company at 38x its FY27E earnings, assigning a target price of Rs. 2,300 per share with an upside of 18% from current market price (CMP).

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