Overview
- Coforge will issue $1.89 billion of equity via preferential allotment at Rs 1,815 per share, implying roughly 20–21% dilution, with Encora’s shareholders set to own about 20% of the enlarged company.
- Coforge plans to raise up to $550 million through a QIP or bridge loan to retire Encora’s term debt.
- The companies expect closing in four to six months subject to shareholder and regulatory approvals, including clearances from the Reserve Bank of India and US authorities.
- The combined business is positioned at roughly a $2.5 billion scale with a larger North America presence, stronger West and Midwest coverage, expanded LATAM nearshore delivery, and 11 client relationships exceeding $10 million each.
- Brokerages broadly endorse the deal’s strategic fit in AI-led engineering and set updated targets, while the company guides to no EPS dilution and several estimates project a 5–6% near-term hit before potential medium-term accretion.