New Delhi: Coforge, an IT services company based in India, is reportedly eyeing a US IPO following a resurgence in public markets. The company has already spent INR 52 crore towards provisioning for American depositary receipts (ADRs) in the last fiscal year. Coforge CEO Sudhir Singh stated that the company had set its sights on becoming the third India-based firm to be listed in the US, after Infosys and Wipro.
Singh stated that all expenses related to the ADR had been provisioned for, and the costs would be reversed once the ADR happens, with shareholders selling shares to cover the expenses. The company has already filed the ADR registration statement with the US SEC in 2021.
However, Singh also noted that the timing of the ADR listing would depend on the market sentiment. Coforge plans to continue refreshing the F1 registration statement under the Securities Act every four months until the market normalizes. “We will wait for the market sentiment to normalize; only then will we pull the trigger,” Singh said.
Coforge recorded over $1 billion in revenue in FY23, experiencing a 22% YoY growth in constant currency. While the company appears to be in good financial shape, it is waiting for the right moment to make its move towards an ADR listing in the US.
Overall, Coforge’s decision to pursue a US IPO highlights the growing trend of Indian companies seeking to expand their global reach by going public in the US. The company’s success and strong financial position may make it an attractive option for investors looking to invest in the Indian tech sector.