Coforge Raises $550M, Seals $2.35B Encora Deal to Build $2.5B Tech Giant

Updated: December 26, 2025 18:45

Image Source: The Financial Express

Coforge Ltd approved fundraising via QIP of up to $550M and preferential equity issuance at ₹1,815.91 per share, linked to its $2.35B acquisition of Encora from Advent International. The deal creates a $2.5B tech services powerhouse, strengthening Coforge’s global footprint and accelerating its digital engineering and transformation capabilities.

Coforge Ltd, a leading global IT services and digital transformation company, has announced a series of landmark developments that will reshape its growth trajectory. The company’s board has approved fundraising via Qualified Institutions Placement (QIP) not exceeding $550 million, alongside the issuance of equity shares on a preferential basis pursuant to a share swap arrangement.

Key Highlights

Fundraising Approval: Coforge will raise capital through a QIP, capped at $550 million, to strengthen its balance sheet and support strategic initiatives.
Equity Issuance: The company has set the issue price of equity shares at ₹1,815.91, with authorization to issue shares worth up to ₹170.3 billion.
Encora Acquisition: Coforge has signed a definitive agreement to acquire 100% of Encora from Advent International, valuing the deal at $2.35 billion enterprise value.
Strategic Impact: The acquisition will create a $2.5 billion tech services powerhouse, expanding Coforge’s global footprint and enhancing capabilities in digital engineering, cloud, and AI-driven solutions.
Share Swap Arrangement: The preferential issuance of shares is tied to the Encora deal, ensuring smooth integration and alignment of ownership structures.
Market Context: The move reflects Coforge’s ambition to scale aggressively in the global IT services market, where demand for digital transformation and engineering services continues to surge.

Industry Significance

The acquisition of Encora positions Coforge among the top-tier IT services firms, combining strengths in product engineering, enterprise solutions, and next-gen digital platforms. Analysts highlight that the deal will accelerate Coforge’s ability to serve clients across North America, Europe, and Asia-Pacific, while diversifying revenue streams.

Investor Outlook

The fundraising and acquisition strategy signals Coforge’s intent to balance growth with financial prudence, ensuring adequate capital support for integration and expansion. Market watchers expect the deal to be transformative, boosting Coforge’s competitiveness against larger peers in the IT services sector.

Sources: Reuters, Economic Times, Business Standard

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