Coforge shares tank 7% as Chairman resigns after internal audit review; key details

Coforge Ltd saw its shares plunging 7 per cent in Wednesday's trade after Chairman OP Bhatt resigned after an internal audit review. Bhatt said continuing on the board while there remains a disagreement considering the characteristics of his "good faith actions in the board evaluation process" would not be conducive to the effective functioning.

"The board wishes to thank Mr. Bhatt for his services," Coforge said, saying he also ceases to be member of the Committees of the Company with immediate effect.

Coforge shares fell 6.57 per cent to open at Rs 1,821 apiece on BSE. Despite this, the stock is up 56.67 per cent in the past six months.

Coforge said in its audit review identified certain concerns in relation to the manner in which the Board Evaluation Report (BER) had been dealt with and presented to the board, including certain material information contained in or relating to the BER and the performance of the Chairman had not been fully disclosed to the board when the BER was presented.

Coforge said the board considered it important to clarify that the Chairman's resignation followed the concerns identified in the internal audit review and the subsequent process undertaken by the board to seek and consider his explanation in relation to those concerns.

In his resignation letter, Bhatt said he did not took the decision lightly. "I have served the company as an Independent Director and Chairman with a strong sense of responsibility and have always sought to discharge my duties independently, objectively and in the best interests of the Company and all its shareholders. My record will reflect my efforts to maintain an appropriate balance between the interests of shareholders, management and the company," he said.

Vivek Sharma, Non-Executive Independent Director, has been appointed as interim Chairperson of the company till January 31, 2027.