Coforge had announced the acquisition of the majority stake in Cigniti Technologies on May 2. It subsequently launched an offer of its own shares later that month through the qualified institutional placement (QIP) route to raise Rs 2,240 crore to finance the acquisition of Cigniti shares.
According to the QIP documents seen by ET, Coforge’s clients in North America are largely located on the east coast whereas Cigniti has customers in the west and Midwest, making for synergy.
The companies, EY and Axis Capital didn’t respond to queries.
Coforge is among the few sizable listed IT companies without an identifiable promoter entirely owned by public investors.
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It was earlier majority-owned by EQT (formerly Baring Private Equity Asia), which had acquired a stake of nearly 70% in the company over a period of time beginning 2019. It sold the entire stake last year, making significant gains. When it entered, the shares had been at Rs 1,394 apiece. It exited at Rs 4,700 per share, when it sold the remaining 26% stake in August last year. It sold partial stakes in 2020, 2021 and 2022.NIIT was renamed Coforge after the acquisition by EQT Baring Private Asia equity. NIIT’s original promoters were Rajendra Pawar and Vijay Thadani. Under the leadership of its CEO Sudhir Singh, a former top executive at Infosys, the company hit the $1 billion revenue milestone in April 2023. It is now looking at AI to get to $2 billion and eventually $5 billion, Singh told ET recently.
“We think AI represents a massive opportunity for us,” said Singh, who is also executive director. “We need to transform into being an actual AI-first organisation, because the journey from $2 (billion) to $5 (billion) or $2 (billion) to $10 (billion) becomes that much faster then.”
Despite the $250 billion IT industry seeing one of its worst growth periods in the last two years due to geopolitical strife and macroeconomic concerns, firms such as Coforge have managed to report strong growth and profitability.
