Business · Companies · 2 hrs ago
Persistent Systems plans to raise over ₹6,000 crore for Nagarro deal
Persistent Systems plans to raise over ₹6,000 crore through bonds to help pay for its acquisition of Nagarro, a German IT company.
The bond sale could begin as early as next week, as Persistent works to complete the deal announced in June.
Persistent has already raised ₹4,264 crore by selling shares through a qualified institutional placement.
The company has secured about 94% of Nagarro’s shares through its takeover offer and an earlier stake.
The total amount due for the acquisition is about $1.25 billion, with the remaining funds expected to come mainly from debt.
The new bonds are intended to replace a short-term loan commitment from Barclays, and are expected to have terms of one to five years.
The acquisition is one of the biggest overseas deals by an Indian IT services company.
Persistent Systems is likely to raise more than ₹6,000 crore through non-convertible debentures to finance its acquisition of Germany’s Nagarro SE.
The company aims to complete the acquisition announced in June.
The NCD proceeds would replace an 18-month bridge financing commitment from Barclays.
Persistent raised ₹4,264 crore through a qualified institutional placement earlier in the week.
Earlier this month, Persistent said it had secured 94% of Nagarro shares.
- Who
- Persistent Systems plans to raise the funds to finance its acquisition of Nagarro SE.
- What
- It is likely to issue more than ₹6,000 crore in non-convertible debentures of various tenures.
- When
- The debt could be raised as early as the week after October 29, 2026.
- Where
- The acquisition is of Germany’s Nagarro SE.
- Why
- The funds would help finance the acquisition and replace the short-term bridge financing commitment from Barclays.
This story does not have two clearly opposing sides.
Persistent launched a voluntary public takeover offer to acquire all outstanding Nagarro shares through its subsidiary Galaxy Germany.
Persistent raised ₹4,264 crore through a qualified institutional placement of shares.
Persistent announced it had secured 94% of Nagarro shares after receiving shareholder offers.
Persistent could raise more than ₹6,000 crore through NCDs.
- Planned NCD fundraising
- More than ₹6,000 crore
- Earlier QIP
- ₹4,264 crore
- Nagarro stake secured
- 94%
- Total acquisition value
- Around $1.25 billion
- NCD tenures
- One to five years, with an average maturity of about three years
What people are saying
The NCDs will be of various tenures matching the cash flows of the company starting from a year going up to five years with an average maturity of about three years
There is a small part of the deal that will most likely include a one-year lot of commercial paper with the rest being NCDs.
The rest of the money will be raised by debt as the company does not want to keep a short term bridge loan on its books which will have to be refinanced ultimately