Coforge Shares Drop 6% Following Chairman Bhatt’s Resignation
BENGALURU: Coforge shares fell nearly 6% on the Bombay Stock Exchange after OP Bhatt resigned from his position as chairman and independent director on Tuesday. His resignation came in the wake of an internal audit that raised issues regarding the handling of the company’s board evaluation exercise. Bhatt, who became chairman in 2024, previously led the State Bank of India from 2006 to 2011.
Concerns Raised in Internal Audit
Coforge stated that the internal audit, part of its review for the September quarter of FY26, identified issues related to the Board Evaluation Report (BER). These concerns included the non-disclosure of material information regarding the report and the chairman’s performance during its presentation to the board. Following the audit, the board sought clarification from Bhatt, who provided a response. However, the board had not reached a final decision on his explanation when he chose to resign on September 8.
In its regulatory filing, Coforge emphasized that Bhatt’s resignation was directly linked to the concerns raised in the internal audit and the subsequent evaluation process. In his resignation email, Bhatt acknowledged the issues surrounding the board evaluation process and expressed that remaining on the board amid disagreements would not support effective governance. He clarified that the board evaluation matters were the primary reasons for his departure and stated that no other significant issues contributed to his decision.
Interim Leadership and Shareholder Dynamics
Coforge has appointed non-executive independent director Vivek Sharma as interim chairperson until January 31, 2027. Bhatt will also step down from all board committees immediately. His resignation follows a shareholder vote last month, where investors rejected his reappointment as an independent director. At the 34th annual general meeting on August 24, the special resolution garnered only 65.4% support, failing to achieve the necessary majority.
Industry experts suggest that disagreements over strategy and policy between Bhatt and Advent, the largest shareholder, may have influenced his resignation. Shriram Subramanian, managing director of InGovern Research Services, noted that Advent voted against Bhatt’s reappointment, indicating a rift in governance perspectives.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
