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Baring PE Asia-controlled NIIT Tech to be renamed Coforge
Photo Credit: VCCircle

Noida-based software services company NIIT Technologies Ltd’s board has approved the change of its name to Coforge Ltd.

The company has received clearance from the Registrar of Companies and is now seeking shareholder approval to effect this change, NIIT Technologies said in a stock-exchange filing.

It would also alter its memorandum and articles of association to reflect the change, the company said.

The company didn’t specify any reason for the name change. However, it could possibly be to differentiate itself from its previous owner NIIT Ltd.

The development comes nearly a year after investment firm Baring Private Equity Asia signed pacts to acquire a 30% stake in NIIT Technologies in April last year. At the same time, it made an open offer to buy 26% more in the Indian software services company from public shareholders.

Baring PE Asia had said it would pick up its 30% stake for Rs 2,627 crore (around $381 million) and pay as much as Rs 2,262 crore for the 26% through the open offer route.

The PE firm later increased the size of the open offer to 35% at the cost of Rs 3,045 crore. The PE firm currently holds a 70.1% stake in the company, stock-exchange data show.

Shares of NIIT Technologies ended the day a whopping 19.53% higher at Rs 1,420.5 apiece in a Mumbai market that rose 0.74% after reporting a 13% rise in net profit for the fourth quarter through March to Rs 124.2 crore and a 14% rise in operating revenue to Rs 1,109 crore.

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