Why Coforge Shares Are Falling Today (Sept 16) : Board Resignations

Coforge shares fell for the second straight session on Wednesday, September 16, after two independent directors resigned from the company's board. The stock was down 2.15% at Rs 1,737.40 around 9:51 am.

The resignations followed an internal KPMG audit that reviewed the accuracy of information presented to the board.

Coforge board resignations

Independent chairman OP Bhatt resigned with immediate effect on September 8. Independent director and Nomination and Remuneration Committee chairperson D K Singh resigned on September 11.

Both resignations followed the KPMG internal audit.

What did the KPMG audit find

According to Motilal Oswal, some reports were routed only to Bhatt and Singh. Some findings were also not included in presentations made to the board.

The brokerage noted that the chairman's own performance category received the lowest rating in the exercise.

What brokers said

Nomura and Motilal Oswal have retained their Buy ratings on Coforge despite the recent board changes.

The stock remains in focus as investors track further company disclosures and changes to its board and governance structure. Coforge

Coforge stock performance

Stock metric	Value
Current price	Rs 1,743
Intraday change	Down 1.74%
Market cap	Rs 77,218 crore
High / Low	Rs 2,022 / Rs 1,008
Stock P/E	40.3
Book value	Rs 284
Dividend yield	0.68%
ROCE	23.5%
ROE	21.4%
Face value	Rs 2

Coforge Stock metric

About Coforge

Coforge is an IT services company providing software solutions and technology services. The company works in areas including digital transformation, cloud computing, cybersecurity, analytics and enterprise applications.

Coforge has customers across global markets, including British Airways, ING, SEI Investments, Sabre and SITA. It also has subsidiaries in the US, Singapore, Australia, the UK, Germany and Thailand.

Why is Coforge share price falling today? Coforge shares fell after two independent directors resigned following an internal KPMG audit of board reporting.

Why did OP Bhatt resign from Coforge? OP Bhatt resigned as non executive independent chairman on September 8 following issues examined in the KPMG audit.

Why did D K Singh resign from Coforge? D K Singh resigned as independent director and NRC chairperson after the board reporting issues came under review.

What did the KPMG audit find at Coforge? The audit found that some board evaluation reports were available only to the chairman and NRC chairperson and were not shared fully with other board members.

What happened to Coforge shares after the resignations? Coforge shares came under selling pressure and fell for a second consecutive session on September 16.

Is Coforge facing a governance issue? The audit identified gaps in the board evaluation and reporting process. Coforge has taken steps to address the board changes and appoint new independent directors.

Who is the interim chairman of Coforge? Vivek Sharma has been appointed interim chairperson until January 31, 2027.

Will Coforge appoint new independent directors? Yes. Coforge has started a global search for two additional independent directors with the help of Egon Zehnder.

What is Coforge's current share price? Coforge was trading around Rs 1,737 to Rs 1,743 during the September 16 session, depending on the time of the market update.

What is the Coforge share price target by Motilal Oswal? Motilal Oswal retained its Buy rating and a target price of Rs 2,200. This is the brokerage's view, not a guaranteed future price.

What is Nomura's target price for Coforge? Nomura retained its Buy rating with a target price of Rs 1,860.

Has Nomura retained its Buy rating on Coforge? Yes. Nomura retained its Buy rating while highlighting the board evaluation and governance concerns.

Has Motilal Oswal retained its Buy rating on Coforge? Yes. Motilal Oswal retained its Buy rating and said its estimates remained unchanged.

Will the Coforge board changes affect its business operations? Coforge management has said the board developments have not changed its business strategy or priorities.

Has Coforge changed its FY27 guidance? The company has maintained its FY27 financial guidance despite the recent board changes.

What is Coforge doing after the director resignations? The company has appointed an interim chairperson and started the process of appointing two new independent directors.

Will there be more resignations from the Coforge board? Coforge management has indicated that it does not expect further board churn beyond the appointments already underway.

What should investors watch in Coforge now? Investors are likely to track the appointment of new independent directors, the selection of a permanent chairperson, further company disclosures and the company's operating performance.

Is Coforge stock a Buy after the board resignations? Nomura and Motilal Oswal have retained Buy ratings, but those are their respective brokerage views. Investors should assess the company's governance developments, valuation and business outlook before making decisions.

What is the latest news on Coforge shares? The latest development is continued pressure on the stock after the resignation of OP Bhatt and D K Singh following the KPMG review of board reporting. The company is now working on board appointments and leadership transition.