Shares of information technology company Coforge fell 6.7% to Rs 4,039 per share on the BSE in intraday trade on Monday after 7.18 million shares, or nearly 10 per cent of the total share capital, changed hands on the BSE and NSE in morning trade. The stock touched an intraday low of Rs 4,037 on the National Stock Exchange.

Coforge was down 6% at Rs 4,070 per share on the BSE at 9:46 am. In contrast, the S&P BSE Sensex fell 0.23%.

On February 13, about 60 lakh shares changed hands through the block deal window, equivalent to a 9.8% stake in Coforge Limited. While the identities of the buyers and sellers were unknown, it was earlier reported that a stake in Hulst BV, an entity controlled by Baring Private, was set to sell some of its shares.

The stock opened 5% lower at around Rs 4,100 a share after the block deal on heavy volume.

The block deal was initially scheduled for a 7% discount to the closing price of Rs 4,330 per share on February 11, according to media reports. At a discount of 9.8%, the transaction value will be Rs 2,600 crore.

The private equity firm acquired a stake in the mid-tier IT company in 2019. It held a 63.99% stake in Coforge at the end of the March 2021 quarter. A subsequent sale of 40% of the promoters’ shares has slashed that figure.

Brokerage Nomura Research has initiated a ‘buy’ call on Coforge Ltd with a target price of Rs 5,050.

In the third quarter, Coforge recorded a 24.2% year-on-year rise in net profit to Rs 228.20 crore in a seasonally weak quarter. Revenue stood at Rs 2,055.8 crore, up 23.99% year-on-year.