COFORGENSECoforge LimitedHighNeutral
Announced Thu, 23 Apr · 07:49 IST

Coforge Limited has informed the Exchange regarding allotment of 93796508 securities pursuant to Preferential Issue at its meeting held on April 23, 2026

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Price reaction · full curve 14 horizons · vs prior close
-7.0%1-day move
₹1238.00
prior close
₹1237.50
base price
After-mkt
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AI summary

Coforge has allotted 93,796,508 equity shares (face value INR 2 each) at INR 1,815.91 per share to Encora Holdco Limited (36.9 million shares) and AI Altius Parent (Cayman) Limited (56.9 million shares) as consideration other than cash for acquiring Encora US Holdco, Inc. and Encora Holdings Limited. Total consideration is approximately INR 17,032.60 crore. The company also approved a USD 550 million secured loan facility from JPMorgan Chase, Bank of America, Citibank, HSBC, and BNP Paribas at 4.6% interest rate for 3 years to fund the acquisition. Post-allotment, paid-up capital increased from 33.59 million to 42.96 million shares. Two new non-executive directors from Advent Private Equity were also appointed.

Likely market impact

Significant equity dilution of approximately 28% from this preferential allotment. The USD 550 million debt combined with share issuance increases financial leverage for the Encora acquisition. New board appointments from Advent PE may bring strategic oversight.