Big news in the tech services space: Coforge is set to buy all of Encora for about $2.35 billion.
Deal Overview
- Purchase price: Rs 17,032.6 crore (≈ $2.35 billion).
- Coforge will own 100 % of Encora after the transaction.
- Key sellers include Advent International, Warburg Pincus and other minority shareholders.
Funding the Purchase
The board approved a qualified institutional placement (QIP) to raise up to $550 million. The money will be used mainly to pay back the term loan that Encora currently carries.
Other Market Moves to Watch
- Sigachi Industries: CEO Amit Raj Sinha was remanded in a fire‑related probe; Deputy Group CEO Lijo Stephen Chacko will run day‑to‑day ops. The board may raise funds via non‑convertible debentures.
- Viceroy Hotels: Shareholders approved a Rs 206 crore purchase of SLN Terminus Hotels and Resorts.
- Lloyds Enterprises: Secured a Rs 361 crore loan to complete a warrant conversion and will fully own Techno Industries after a pending share purchase.
- Vedanta: Won the Depo Graphite‑Vanadium block in the critical mineral auction, adding to its mineral portfolio.
- Suzlon Energy: CEO of the wind‑turbine division stepped down on Dec 26.
- Timex Group India: An 8.93 % stake will be sold through an offer‑for‑sale at Rs 275 per share.
- NBCC (India): Settled a land dispute in Delhi, each party receiving half of a 42.46‑acre plot.
Why It Matters
For investors, Coforge’s large acquisition signals confidence in global IT services demand, while the fresh $550 million capital could strengthen its balance sheet. The other corporate actions show a busy week of deals, fundraisings, and leadership changes across sectors.
Takeaway
Keep an eye on Coforge’s share price after the announcement and watch how the raised funds are deployed. The broader list of company updates may also present opportunities or risks depending on your portfolio.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.