Overview
- Coforge will issue $1.89 billion in preferential shares at Rs 1,815 each, leaving Encora’s sellers with roughly 20% of the expanded company and implying about 20–21% dilution.
- The company plans up to $550 million via a Qualified Institutional Placement or bridge financing to retire Encora’s existing debt.
- Encora brings about $500 million in revenue, roughly 9,300 employees and higher margins, expanding Coforge’s US West and Midwest presence, LATAM nearshore delivery and exposure to hi‑tech and healthcare.
- The transaction targets a four‑to‑six month close pending shareholder and regulatory approvals, including clearances from the Reserve Bank of India and US authorities.
- Coforge shares fell roughly 2–4.5% intraday as analysts broadly endorsed the strategy but flagged near‑term earnings dilution and execution risk, with some downgrades offset by upgraded targets elsewhere.