Coforge Wraps Up Encora Deal, Raises $550 Million Via Loan

Recently, Coforge, an information technology (IT) services firm, has finalised its acquisition of Silicon Valley-based AI firm Encora at an enterprise value of USD 2.5 billion.

According to reports, the company has secured a USD 550 million loan backed by a consortium of major banks, including JPMorgan Chase Bank, Bank of America, Citibank, HSBC and BNP Paribas. The money will be used to fund the transaction.

On 23 April 2026, Coforge share price on the National Stock Exchange (NSE) closed at ₹1,220.60, down 1.23%. Today, by 10:09 AM, the price dropped further. It traded at ₹1,176.10, down 3.65%.

Key Details Of The Loan & Share Allotment

Coforge has secured a loan from the banks at a fixed interest rate of 4.6%, and the repayment instalment will begin six months after drawdown.

The company has further announced that the board has cleared the issuance of more than 9.37 crore equity shares on a preferential basis to Encora’s shareholders, Encora Holdco Limited and AI Altius Parent (Cayman) Limited, at a price of ₹1,815.91 per share.

Encora’s financials will be consolidated into Coforge starting 1 May 2026.

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Importance Of Encora Acquisition

Coforge sees strong value in the Encora acquisition. It believes the deal fits well with its existing business.

The acquisition will strengthen its presence in Latin America. This gives Coforge a bigger nearshore delivery base. It can serve US clients more closely now. The focus stays on engineering and AI talent.

The company also expects scale to improve. The combined entity will have 45 clients with deals above $10 million. These are stable and can grow further.

Coforge added that its AI-led engineering, data, and cloud services could drive major revenue. It expects these segments alone to reach around $2 billion by FY27.

Sources:

NDTV Profit

Financial Express