Coforge launches QIP to fund acquisition

Bengaluru: Noida-based IT firm Coforge launched a share placement for qualified institutional buyers late Tuesday night. The company plans to raise up to ₹2,240 crore through the QIP (qualified institutional placements) to fund its acquisition of Cigniti Technologies.

The company in a filing with BSE said that the floor price for the issue is at ₹4,531.40 per equity share. In a recent interaction with ET, Sudhir Singh, the CEO, said that the company will shell out $220 - $250 million, (or about ₹1,826 crore - ₹2,081 crore) to acquire Hyderabad-based Cigniti Technologies even as the Noida-based IT firm launched an open offer to acquire an additional 26% stake in Cigniti. He had said that they would use QIP to acquire between 51% - 54% of the of Cigniti.