New Delhi — Shares of IT services company Coforge fell more than 8% in early trading Wednesday after Chairman and Non-Executive Independent Director O.P. Bhatt resigned with immediate effect following concerns raised in an internal audit review of the company’s board evaluation process.
The stock dropped as much as 8.67%, or Rs 169 per share, to an intraday low of Rs 1,780.10 on the BSE by 9:50 a.m.
In an exchange filing, Coforge said its board had noted Bhatt’s resignation and that he had also ceased to be a member of the company’s board committees.
Bhatt said in his resignation email that he had acted in good faith and that remaining on the board while there was a disagreement over his actions in the board evaluation process would not support its effective functioning.
“The matters referred to above are the material reasons for my resignation, and I confirm that there are no other material reasons for my resignation,” Bhatt said in the email disclosed by the company.
Coforge said an internal audit conducted as part of its Q2 FY26 audit plan reviewed the process followed for the board evaluation exercise under Bhatt’s guidance and the resulting Board Evaluation Report presented to the board.
The review identified concerns about how the report was handled and presented. According to the company, certain material information contained in or related to the report, including information concerning the chairman’s performance, had not been fully disclosed to the board when the report was presented.
The board subsequently outlined its concerns and sought an explanation from Bhatt.
Coforge said Bhatt responded to the concerns, but the board was still considering his explanation and had not reached a final decision on the issues raised.
The company has named Vivek Sharma, a Non-Executive Independent Director, as interim chairman through Jan. 31, 2027.
Bhatt also serves as an Independent Director of Wockhardt Ltd., where he is a member of the audit, stakeholders’ relationship and capital raising committees. (Source: IANS)
