RBI Approves Coforge’s $1 Billion Encora Acquisition

Synopsis: Coforge gets RBI nod for $1B+ Encora acquisition after US antitrust, shareholder approvals. Key overseas IT deal clears major hurdle; few clearances left for global expansion.

Coforge Limited has secured a major regulatory approval. India’s Reserve Bank of India (RBI) has cleared the company’s overseas investment for its Encora acquisition.

The approval covers an Overseas Direct Investment exceeding $1 billion. This clears a critical hurdle under the Foreign Exchange Management (Overseas Investment) Rules. Coforge shares reacted positively to the news on Tuesday. The stock saw buying interest as investors welcomed the regulatory progress on this high-value deal.

The Deal at a Glance

Coforge signed a share subscription and share purchase agreement on December 26, 2025. The agreement was executed with Encora US Holdco, Inc. and Encora Holdings Ltd. The investors in this transaction are Encora Holdco Ltd. (UK) and AI Altius Parent (Cayman) Limited. Together, the parties refer to this deal as the ‘Transaction.’

Coforge shares have shown steady upward momentum across timeframes. The stock is up 4.13% in one month and has gained a strong 29.94% over six months. On a yearly basis, it has risen 28.37%, reflecting sustained investor confidence.

A String of Green Lights

This RBI approval follows a series of earlier regulatory clearances. On January 28, 2026, the company received Hart-Scott-Rodino (HSR) Antitrust approval in the United States. On February 28, 2026, shareholders approved the deal through a postal ballot. The vote covered preferential allotment, debt funding, and special rights under the Share Purchase Agreement to Advent. Furthermore, competition authorities in Australia and other jurisdictions also gave their clearance.

What Coforge Does

Coforge is a leading Indian IT services company. It provides end-to-end software solutions to clients worldwide. The company ranks among India’s top-20 software exporters. Its global clients include British Airways, ING Group, SEI Investments, Sabre, and SITA. Coforge operates subsidiaries across the US, UK, Singapore, Australia, Germany, and Thailand. It also maintains business partnerships with large IT firms globally.

What Comes Next

A few regulatory approvals across other jurisdictions are still pending. However, the company confirmed these are in their advanced stages of processing. Coforge is actively monitoring each of these processes. It will update stock exchanges promptly once further approvals arrive.

The company stated this disclosure aims to keep exchanges and investors fully informed. Therefore, market participants can expect regular updates as the Encora acquisition moves toward completion.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post RBI Approves Coforge’s $1 Billion Encora Acquisition appeared first on Trade Brains.