Mumbai, September 9 (Daily Kiran) : Mumbai-based midcap IT firm Coforge is facing turbulence after the resignation of its non-executive independent director and chairman, OP Bhatt. His departure comes in the wake of concerns raised during an internal audit regarding the company’s board evaluation process.
Following the announcement of Bhatt’s resignation, Coforge’s shares experienced a sharp decline. During trading on Wednesday, the stock hit an intraday low of ₹1,780.70, marking an 8.71% drop from its previous close of ₹1,950.
As of 10:45 AM, the stock was trading at ₹1,862, down 4.50%.
In a regulatory filing, Coforge indicated that its internal auditor reviewed the board evaluation process and the associated Board Evaluation Report (BER) as part of the internal audit plan for the second quarter of fiscal year 2026. This evaluation was conducted under Bhatt’s supervision.
The audit revealed deficiencies in the process and disclosure of information related to the board’s assessment, including aspects concerning the chairman’s performance. According to the filing, when the BER was presented to the board, critical information was not fully disclosed.
In light of the internal auditor’s findings, the board sought clarification from Bhatt. He defended his actions, asserting that he acted in good faith during the evaluation process. However, before the board could complete its review of his explanations or make a final decision, Bhatt resigned on September 8.
Currently, Coforge has appointed fellow non-executive independent director Vivek Sharma as interim chairman until January 31, 2027. Additionally, Bhatt serves as an independent director at Walkhart Limited, where he is a member of the audit, stakeholders relationship, and capital raising committees.
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