Coforge: Coforge launches QIP to finance acquisitions

Bengaluru: Noida-based IT firm Coforge conducted a share issue to eligible institutional buyers late on Tuesday evening. The company plans to raise up to ₹2,240 crore through QIP (Qualified Institutional Placements) to fund the acquisition of Cigniti Technologies.

The company, in a filing with the BSE, said the minimum issue price is ₹4,531.40 per share. In a recent conversation with ET, Sudhir Singh, CEO, said that the company will spend $220-250 million (or approximately ₹1,826 crore-2,081 crore) to acquire Hyderabad-based Cigniti Technologies, even though the Noida-based IT firm has announced open offer to purchase an additional 26% of shares in Cigniti. He said they would use the QIP to acquire a 51% to 54% stake in Cigniti.