Cognizant mulls India listing to boost shareholder value, sources say

Cognizant Technology Solutions is exploring a secondary listing in India through Indian Depository Receipts (IDRs), sources told CNBC-TV18.

The US-based IT services major is holding talks with regulators and other authorities to explore possible options for the India listing. The move, if it goes through, could help bridge what analysts call a "price-performance gap" between Cognizant and its Indian peers.

Indian markets continue to value IT services as a core sector, and Cognizant's management believes that listing in India could enhance shareholder value and broaden its investor base.

"Cognizant's board and management team regularly assess opportunities to enhance shareholder value. As part of this, we are evaluating a potential primary offering and a secondary listing in India with our legal and financial advisors," the company told CNBC-TV18.

The company added that it is engaging with stakeholders in both India and the US to assess the feasibility and implications of such a move.

However, it mentioned that the process of pursuing a primary or secondary listing in India is complex and remains in an early stage.

"We view this as a long-term project. No decision has been made yet, and any such offering would depend on market conditions and regulatory approvals," the company said.

If approved, Cognizant could join the ranks of Indian IT giants like Infosys and Wipro, whose American Depository Receipts (ADRs) trade on global indices.

Strong quarter for Cognizant

Cognizant posted healthy results, with a 4% year-on-year organic growth and raising its CY2025 growth guidance to 6-6.3% (3.5-3.8% organically).

The company's margins improved to the upper end of the 15.5-15.7% range.

Large deal momentum also remained strong, with six deals valued at over $100 million each.

According to analysts, company's turnaround has been steady across multiple fronts without hurting margins, a performance that could intensify competition for Indian IT peers at a time when industry growth is slowing.