Coforge Limited Board Approves USD 550 Million Loan Facility and Significant Share Allotments
Coforge Limited announced major corporate developments following its Board of Directors meeting held on April 23, 2026. The company approved the availing of a substantial loan facility and executed key agreements related to its investments, including the infusion of funds into Encora US Holdco, Inc. and Encora Holdings Limited.The Board also approved the creation of a charge over the company's properties to secure the massive financing package and saw the allotment of equity shares to key investors. Furthermore, the company announced the appointment of two additional non-executive directors.
Major Financing and Security Measures
On April 23, 2026, the Board of Directors approved availing a loan facility of up to USD 550 million. This financing is proposed to be secured by a charge over certain assets of the Company.In connection with the overall proposed transaction, the Board also approved the creation of a hypothecate, mortgage, pledge, and/or charge on all or any properties, both present and future, or the whole or substantially the whole of the undertaking(s) of the Company. This charge is intended to secure the due payment of the principal, interest, and all associated costs in respect of borrowings availed from lenders.
Under a separate agreement, the Company executed a Facilities Agreement with several major financial institutions, including JPMorgan Chase Bank, N.A., Bank of America, N.A., Citibank, N.A., The Hongkong and Shanghai Banking Corporation Limited, and BNP Paribas. This agreement sanctions a secured loan for a tenor of 3 years, with a total size of USD 550 million. The facility is set to commence with repayment after six months of draw down.
Capital Structure Changes and Investor Funding
The company is also finalizing the funding for its subsidiaries, Encora US Holdco, Inc., and Encora Holdings Limited. The Board approved the proposed subscription of securities totaling USD 550,000,000.The proposed subscription details are as follows:
| Target Company | Number of Shares Proposed to be Subscribed | Subscription Amount |
|---|---|---|
| Encora US Holdco, Inc. | 3459.2 shares of common stock | USD 280,000,000 |
| Encora Holdings Limited | 68,01,007.6 ordinary shares | USD 270,000,000 |
| Total | Total | USD 550,000,000 |
Additionally, the Board approved the preferential allotment of 9,37,96,508 fully paid-up Equity Shares to Encora Holdco Limited and AI Altius Parent (Cayman) Limited, with a total consideration of INR 1,70,32,60,16,842.
The allotment structure and resulting changes in capital are detailed below:
| Allottee Name | Number of Equity Shares Allotted | Issue Price (in ₹) | Total Consideration (in ₹) |
|---|---|---|---|
| Encora Holdco Limited | 3,68,96,613 | 1,815.91 | 67,00,09,28,513 |
| AI Altius Parent (Cayman) Limited | 5,68,99,895 | 1,815.91 | 1,03,32,50,88,329 |
| Total | 9,37,96,508 | 1,70,32,60,16,842 |
Following this allotment, the issued, subscribed, and paid-up capital of the Company will increase to 85,92,94,252, up from 67,17,01,236.
Agreements and Governance
The Board also approved entering into a Second Amendment Agreement to the Share Subscription and Purchase Agreement (SSPA) with Coforge Limited, Encora US Holdco, Inc., Encora Holdings Limited, Encora Holdco Limited, and AI Altius Parent (Cayman) Limited. This agreement revises the terms, particularly regarding the timing and manner of funding the Target Companies.In a corporate governance update, the Board approved the appointment of Shweta Jalan and Atin Hirachand Jain as Additional Directors and Non-Executive Directors, effective from April 23, 2026, subject to shareholder approval.
| Director Name | Role | Brief Profile |
|---|---|---|
| Shweta Jalan | Additional Director (Non-Executive) | Managing Partner at Advent Private Equity since 2009. Head of Asia for Advent. |
| Atin Hirachand Jain | Additional Director (Non-Executive) | Director at Advent Private Equity with fifteen years of experience. Covers Technology investments across US and India. |
COFORGE Stock Price Movement
Shares of Coforge Limited slipped by 4.24% on Wednesday, settling at ₹1235.8 in trading. The stock saw high volatility throughout the session, trading 6.29 million shares and marking a low of ₹1208.2.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.