Coforge Secures Funding and Completes Preferential Issue to Close Encora Acquisition

Coforge Limited ( (IN:COFORGE) ) just unveiled an announcement.

Coforge’s board has approved a second amendment to its share subscription and purchase agreement related to the Encora US Holdco and Encora Holdings acquisition, clarifying the timing and structure of funding to these entities. In line with the revised funding framework, the company will take on up to USD 550 million in secured loans, backed by charges over certain present and future assets to preserve financial flexibility and support growth.

To secure this new borrowing, the board has cleared the creation of mortgages, pledges and charges over substantial company properties, subject to shareholder approval under India’s Companies Act. The board also completed a large preferential share issue worth about INR 170.3 billion to Encora Holdco Limited and AI Altius Parent (Cayman) Limited via a share swap, boosting Coforge’s paid-up equity capital and finalizing the Encora acquisition, while approving fresh capital infusion into the acquired entities through new share subscriptions.

More about Coforge Limited

Coforge Limited is an India-headquartered IT services company focused on digital, technology, consulting and business process solutions for global clients. Listed on BSE and NSE, it operates across sectors such as financial services, travel, insurance and other industries, and uses acquisitions and structured funding to expand its capabilities and market reach.

Average Trading Volume: 185,229

Technical Sentiment Signal: Buy

Current Market Cap: 432.3B INR

See more data about COFORGE stock on TipRanks’ Stock Analysis page.