Shares of IT firm Coforge jump 4.3% to Rs 5,734 at close on US IPO plans

The company said it filed Registration Statement on Form F-1 with the US Securities and Exchange Commission for a proposed offer of American depositary shares

Shares of Coforge jumped 4 per cent on Tuesday after the company announced its plan to list in the US. The global IT services company said it filed Registration Statement on Form F-1 with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) of American depositary shares (ADS).

The number of equity shares to be represented by each ADS, the number of ADS to be offered and the price range for the proposed offering have not yet been determined, Coforge said in a release.

Its stock rose 4.3 per cent to end at Rs 5,734, valuing the company at Rs 34,767 crore.

Coforge, promoted by Barings Private Equity (PE) Asia, would join the likes of Infosys and Wipro to list its securities in the US.

ADS are shares belonging to a foreign firm traded on the US bourses. The underlying shares are those listed in the home market.

In July, Coforge, formerly known as NIIT Technologies, had obtained board approval to undertake a depository receipt programme to allow transfer of a maximum of 18.5 million existing equity shares by eligible shareholders.

The company said the selling shareholders will be identified through an invitation process. All shareholders holding equity shares of Coforge between November 12 and December 2, 2021 will be eligible to offer their equity shares for sale in the IPO.

Analysts said eligible shareholders should evaluate the option of tendering their shares after the company announces the pricing.

Barings, which holds 50.17 per cent stake, is expected to divest its holding in the IPO. Mutual funds hold 14.42 per cent stake in Coforge while FPIs hold another 20.66 per cent.

Citigroup and JP Morgan are acting as global coordinators and lead bookrunners for the IPO. Barclays, BofA Securities, Evercore Group and Credit Suisse are some of the additional bookrunners.