Coforge Board Approves $550M QIP Amidst Stock Decline & Encora Acquisition

• Coforge board approved raising $550 million through a Qualified Institutional Placement (QIP) on Friday.
• The company's shares declined ahead of the board meeting and have fallen 7% in the last two sessions due to fundraise announcement.
• Coforge is also set to acquire 100% stake in Encora for ₹17,032 crore from Advent International, Warburg Pincus, and other shareholders.
• This marks Coforge's second fundraise in 18 months, with the previous QIP funding the Cigniti Technologies acquisition.
• Concerns persist over potential stock dilution, weak cash conversion guidance, and the firm's free cash flow/PAT guidance.

Why It Matters: Coforge secures $550M via QIP for growth and Encora acquisition, but faces stock dilution concerns.