Block deal: Coforge shares in focus as promoter may sell entire stake today

Shares of Coforge (erstwhile NIIT Technologies) will be in focus on Thursday morning as a report quoting sources suggested that promoter Baring PE, through its affiliate Hulst BV, may sell its entire stake in the IT services company through block deals on Thursday. The floor price for the deal is set at Rs 4,550 per share, which was at a 7 per cent discount to Wednesday's closing price, as per the report.

Coforge is an IT solutions organisation with focus on three key verticals: Banking and Financial Services, Insurance, Travel and Transportation. It has capabilities in Data & Analytics, Automation, Cloud, and Digital.

Data compiled from corporate database AceEquity suggests promoter stake in the company has been falling since September quarter of 2019 (70.04 per cent). In the June quarter, promoters held 26.63 per cent stake against 30.16 per cent in March and 40.06 per cent in the December quarter. In February this year, the private equity firm sold a significant 9.8 per cent stake in the software company for Rs 2,430 crore. Later in May, Hulst BV sold 3.5 per cent stake in Coforge through the open market for Rs 887 crore.

Under the block deal, Hulst BV would offload 1.62 crore shares. The deal value is pegged around Rs 7,400 crore. Hulst BV is owned by private equity firm Baring PE.

Public shareholders in the stock stood at 73.37 per cent at the end of June quarter.