Coforge Gets Exchange Nod for ₹17,028 Crore Preferential Issue

Coforge has received in-principle approval from stock exchanges for its planned ₹17,028.69 crore preferential share issue. The IT services firm will issue 93,796,508 equity shares at ₹1,815.91 per share. This capital raise is a critical step to fund the acquisition of Encora US Holdco, Inc. and Encora Holdings Ltd.

The approval marks a significant regulatory milestone following the Share Purchase Agreement (SSPA) signed on December 26, 2025. The exchange's nod on April 10, 2026, clears the path for formal closing.

The acquisition of Encora is set to significantly expand Coforge's global presence, particularly in North America and Europe. It is expected to enhance the company's capabilities in cloud services, digital engineering, and data analytics, strengthening its position in the competitive IT services market.

Coforge, a global digital services and solutions provider, operates across sectors like BFSI, Travel, Transportation, and Logistics, and Industrial. This acquisition continues its strategy of using mergers and acquisitions to boost capabilities and market reach.

Shareholders can anticipate the issuance of new shares at a premium. The successful closing of the Encora deal, supported by this substantial capital infusion, positions Coforge for accelerated growth and potential market share gains.

A key risk to monitor is the execution of the Encora acquisition, which must be formally closed within 15 days from the April 10, 2026, approval date.

Coforge's strategic acquisition aligns with broader trends in the IT services sector, where companies like LTIMindtree, Persistent Systems, and larger players like TCS have also used M&A to consolidate, enhance digital offerings, and expand. Investors will be watching for the swift completion of the Encora deal, its successful integration, and its impact on Coforge's financial performance and market penetration.