Synopsis: Coforage has obtained all the international regulatory clearances to its 2.5 billion acquisition of the US-based AI company Encora – one of the biggest AI deals in Indian IT history. The merger will have a combined run rate of $2.5 billion, boosting the engineering and cloud services of Coforge, which is AI-based.
On April 13, 2026, Coforge Limited announced that unconditional regulatory approvals in all jurisdictions were obtained regarding the Encora takeover. The transaction, declared towards the end of 2025 will finally be finalized now.
At the same time, Coforge gave a preferential issue of 93,796,508 Equity shares at a price of Rs 1,815.91 per share which is much higher than the current market value of Rs 1,223 per share.
For mid-tier Indian IT firms, acquiring a scaled AI engineering company eliminates years of organic capability building. Encora’s AI-led engineering and cloud expertise directly addresses the fastest-growing segment of enterprise IT spending, allowing Coforge to compete for larger, AI-native transformation contracts globally.
The acquisition consideration stands at $2.5 billion. Combined entity targets a $2.5 billion annual revenue run rate. Coforge shares carry an RSI of 55, indicating neutral sentiment, and have fallen 26% year-to-date. Preferential shares priced at Rs 1,815.91 versus current market price of Rs 1,223.
Shares of Coforge held steady at Rs. 1,231.5 (+0.6%) on April 13, 2026, outperforming a weak Nifty IT index. The share has been experiencing good demand where 59% of the investors are buy-side and the preferential issue price of Rs. 1,815.91 is considered a good long-term valuation despite the present volatility in the stock market.
Company Overview
Coforge Limited is a Noida-based IT services company specialising in digital transformation, cloud, and AI services across insurance, banking, travel, and government sectors globally.
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