India's Coforge jumps after RBI clears $1 billion overseas investment for Encora deal

Coforge

01/04/2026 05:09

** IT services provider receives RBI approval for an overseas investment exceeding $1 billion to complete its $2.35 billion acquisition of US AI firm Encora

** Shares of Coforge COFO.NS rise 3.8% to 1,157.10 rupees

** Deal was initially announced in December 2025, subject to regulatory approval

** COFO funded the $1.89 billion equity value of the deal through the issue of preference shares at 1,815.91 rupees apiece, while Encora shareholders will receive a 20% stake in the combined firm

** Encora is backed by Advent International and Warburg Pincus. Co offers AI solutions for product, cloud and data engineering

** Analysts have a "buy" rating on avg for COFO; median PT is 1,925 rupees - data compiled by LSEG

** YTD, COFO dowm ~30%

 (Reporting by Urvi Dugar in Bengaluru)

 ((UrviManoj.Dugar@thomsonreuters.com;))