Coforge Acquires Major Stake in Cigniti Technologies for Rs 645 Crore

IT company Coforge has acquired a significant 17 per cent stake in Cigniti Technologies worth Rs 645 crore through open market transactions. This acquisition follows previous share purchases and approvals, with Coforge gradually increasing its stake. The transaction has led to exits by several public shareholders and a minor dip in Cigniti's share price.

In a significant move within the IT sector, Coforge announced on Friday the acquisition of a 17 per cent stake in Cigniti Technologies for Rs 645 crore through open market transactions.

Data from the Bombay Stock Exchange revealed that Coforge purchased 46,18,199 shares at an average price of Rs 1,398.5 each, leading to a total transaction value of Rs 645.85 crore.

The acquisition saw public shareholders such as Kukunuru Madhava Lakshmi and Kukunuru Kumar Bapuji selling their entire 6.83 per cent stake in Cigniti. Additionally, Sapna P and Venkata Subramanyam Chakkilam, a promoter of Cigniti, also offloaded shares in the company. Shares of Cigniti Technologies subsequently fell by 1.28 per cent, closing at Rs 1,367.20 per piece on the NSE.

On Thursday, Coforge, a digital services and solutions provider, had already obtained an 11 per cent stake in Cigniti, further solidifying its position. Back in May, Coforge's board of directors approved the acquisition of a 54 per cent stake in Cigniti, pending definitive agreements and certain conditions. The Competition Commission of India cleared this move last week, marking a significant consolidation within the IT and IT-enabled services sector.

(Disclaimer: With inputs from agencies.)