Coforge has secured $550 million, or Rs 5,156 crore, in loans from multiple banks to support its recent purchase of digital services provider Encora. In an exchange filing, the company said it has secured loans from JPMorgan Chase, Bank of America, Citibank, HSBC, and BNP Paribas.
Coforge stated that, as part of the Encora purchase deal, it has allotted 9.37 crore company shares on a preferential basis to Encora sellers at a price of Rs 1,815.91 per share.
Further, Coforge elaborated that after securing the loan facility, it has called off the Qualified Institutional Placement plan, which would have resulted in further equity dilution. The company said that it has secured the loan at an interest rate of 4.6 percent for a period of three years.
Coforge completes Encora acquisition
Coforge announced in December last year that it is acquiring a 100 percent stake in the US-based Ancora at an enterprise value of $2.5 billion. At the time, the company stated that the acquisition would be financed with $1.89 billion in equity and the balance through a bridge loan or a QIP to retire the Encora Group term loan.
Coforge stated that the consolidation of Encora’s financials into Coforge will be effective May 1, 2026, and Coforge’s FY27 results will reflect eleven months of impact from Encora operations.
“The firm is pleased to share that the integration activities related to Encora’s integration into Coforge are ahead of plan, with the combined cost synergies on G&A expected to be between 20 – 25%.” Coforge said in the disclosure.
Significance of Encora acquisition
Coforge stated that its Encora acquisition is highly synergistic because it will reposition Coforge as a player with scaled-up nearshore delivery capability in Latin America, with an engineering and AI Talent base servicing US clients.
The company said that the combined firm will have 45 $10 million+ highly scalable relationships, and the combined AI-led engineering, data, and cloud services alone are likely to deliver $2Bn in revenue in FY27.
About Coforge
Coforge is an engineering services company that designs, builds, and delivers intelligent solutions for its clients. The company uses AI and hyperspecialized industry expertise to engineer autonomous enterprises.