Coforge shares in focus as $2 billion Encora acquisition gets statutory approvals

“Coforge, an AI-native engineering services leader, today announced that all the regulatory approvals and statutory clearances in multiple jurisdictions for the acquisition of Encora have been secured,” said the company in its press release.

Coforge also disclosed that the planning and execution of the acquisition deal is ‘in line’ with the established schedule, as the collaboration aims to create a $2.5 billion artificial intelligence (AI) native tech services firm with $2 billion data AI-led engineering and cloud-based services core.

The company also said that it remains confident in achieving its margin guidance and in its cost optimisation plan, which is expected to deliver a 20-25% reduction in G&A costs for the combined business within the projected timelines.

“We are pleased to report that the transaction has gone exactly as per plan and every element of anticipated synergies is on course to be realised. We look forward to the two firms merging by the end of April 2026 and subsequently operating as a $2.5 plus billion firm on a run rate basis, with a US$2 billion enterprise core of AI-led engineering, data, and cloud services,” said Sudhir Singh, the CEO and Executive Director of Coforge.

Coforge-Encora acquisition details

In December 2025, Coforge announced its plans to acquire Encora from Advent, Warburg Pincus and other minority shareholders for an enterprise value of $2.35 billion, according to the official filing.

The company will pay an equity value of nearly $1.89 billion, funded via a preferential allotment of equity shares for the acquisition, after which the Encora shareholders will hold nearly 20% of the expanded share capital of Coforge upon completion.

As per the official release, the combined business after the acquisition is expected to operate at an EBIT margin of 14%, and the deal is expected to be EPS accretive in the financial year ending 2026-27.

Coforge share price

Coforge shares closed 3.31% lower at ₹1,223 after Friday’s stock market session, compared to ₹1,264.90 at the previous market close, according to NSE data. The company announced its approval update before the market opening bell on April 13.

Shares of Coforge have given stock market investors more than 111% returns on their investment in five years and over 51% returns in the last three-year period. However, the exchange data also showed that the company’s stock has lost 3% in one year.

On a year-to-date (YTD) basis, Coforge shares are down 26% but have gained 12% in one month, and are trading 0.23% higher in the last five market sessions.

Coforge stock hit its 52-week high of ₹1,994 on July 8, 2025, while the 52-week low was at ₹1,008.10 on March 17, 2026, according to NSE data. The IT company’s market capitalisation (M-Cap) stood at ₹40,603.78 crore as of last week’s stock market close.