Coforge Shares Swing on Encora Deal; Analysts Skeptical of $2.35B Price Tag

• Coforge acquired Encora for $2.35 billion, funding $1.89 billion via preferential allotment, giving Encora shareholders 20% stake.
• Coforge shares experienced sharp volatility, initially gaining over 2% before fluctuating and closing 2% higher.
• Analysts are skeptical, calling the acquisition expensive at ~3.9 times EV to sales, higher than comparable industry deals.
• Post-deal, Coforge aims for $2.5 billion revenue and 14% EBIT margins, with management terming it a "defining moment."
• CEO Sudhir Singh confirmed no new verticals, geographies, or data center investments for 3-5 years, expecting AI to boost revenue.

Why It Matters: Coforge's $2.35B Encora acquisition sparks share volatility and analyst concern over high valuation.