Coforge shares rise 2% after firm appoints Akhil Kumar Gupta as chairman post OP Bhatt’s abrupt resignation
Coforge appoints former Bharti Enterprises vice-chairman Akhil Kumar Gupta as chairperson and independent director for five years, following boardroom turmoil triggered by O P Bhatt’s resignation. The IT services firm retains its FY27 guidance and long-term growth targets.
Coforge's stock price increased by 2% to reach Rs 1,800 on the BSE following the company's appointment of Akhil Kumar Gupta as chairman and non-executive independent director. Gupta, a former Bharti Enterprises vice-chairman, assumes the role for a five-year term, starting from the current date. This move comes after O P Bhatt's abrupt resignation on September 9 due to a boardroom scandal.
Bhatt had withheld a performance evaluation report that rated his own performance the lowest. Coforge conducted a global search process with Egon Zehnder to find a suitable successor, ultimately selecting Gupta, who impressed all members of the Nomination and Remuneration Committee and the Board. Sharma, interim chairperson, emphasized Gupta's extensive governance experience, professional expertise, and strategic perspectives.
This appointment follows the resignation of D K Singh, chairperson of the nomination and remuneration committee, citing differences with independent and executive directors. Despite the turmoil, Coforge reaffirmed its FY27 financial guidance and remained committed to its strategic targets, including a 20.5%-21% EBITDA margin and over 100% free-cash-flow conversion of profit after tax.
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Also reported by 2 other outlets
- Coforge appoints Akhil Gupta as independent chairperson for five years business-standard.com
- Coforge taps Akhil Gupta as chairman economictimes.indiatimes.com
