Shares of Coforge will be in focus heading into trade on Monday after the company confirmed it has received regulatory approval for the acquisition of US-based firm Encora.
Coforge added that it has secured all global regulatory and statutory approvals secured without conditions pertaining to the Encora deal, which was made at the end of last year with a total consideration of $2.5 billion, making it one of the biggest AI-firm acquisitions in the Indian IT sector.
The approvals are set to clear the path for Coforge to close the transaction, with the combined entity set to operate at a $2.5 billion run rate, the company confirmed in an exchange filing.
This development will also accelerate Coforge’s scale in AI-led engineering, data and cloud services.
Coforge on Friday also approved preferential share approval, which will see the company will proceed with the issuance and allotment of 93.7 crore equity shares at Rs 2 each.
Share issuance at preferential basis at Rs 1,815.91 per share, which is significantly higher than the current market price of Rs 1,223.
Currently trading with a relative strength index of 55, which suggests neutral market sentiment, shares of Coforge have fallen as much as 26% on a year-to-date basis.
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