Coforge falls after tax demand notice of Rs 82.9 crore for FY20

Shares of Coforge fall: Shares of Coforge, formerly known as NIIT Technologies, has plunged as much as 2.50 per cent to Rs 5,082.45 per share after getting tax demand notice worth Rs 82.9 crore for FY 2019-2020 (FY20).

In an exchange filing, the IT company said, “This is to inform that the Company has received income tax assessment order/ Demand order for financial year 2019-20 (assessment year 2020-21) with tax demand along with interest.”

The total tax demand of Rs 82,93,04,505, including interest liability of Rs 25,73,70,345, the company said.

On the impact on financials, the company said, “Considering the jurisprudence around the adjustments made and the facts of the case, the Company in consultation with its tax advisors is of the view that our position will be upheld on ultimate resolution and will not have a material adverse effect on the Group’s Financial Statement.”

Notably, the shares of Coforge have so far this year climbed 28.61 per cent, outperforming its peers including Infosys, LTIMindtree and Wipro.

As of 3:13 pm, the stocks of the company were trading 1.75 per cent lower at Rs 5117.40 per share, according to BSE.

The market valuation of the IT firm is Rs 31,374.84 crore.