Persistent Systems to raise Rs 6,000 crore via NCDs for Nagarro deal
Persistent Systems plans to raise more than ₹6,000 crore through non-convertible debentures for its Nagarro SE acquisition. The company successfully completed a QIP earlier this week, raising ₹4,264 crore. NCDs will range from one to five years, averaging three years in maturity. Persistent secured 94% of Nagarro shares after receiving shareholder offers this month. The total acquisition value is…
Mumbai: Technology firm Persistent Systems is set to raise over ₹6,000 crore through the issuance of non-convertible debentures (NCDs) of varying durations as it finalizes the financing for its acquisition of Germany's Nagarro SE. This second phase of fundraising follows a ₹4,264 crore Qualified Institutional Placement (QIP) of shares earlier this week.
The NCDs will have different maturities, ranging from one to five years with an average maturity of approximately three years, according to a source familiar with the matter. The funds raised will replace a short-term bridge financing commitment the company had with Barclays. The NCDs are anticipated to be priced between 8.75% and 9.50% and will be underwritten by HSBC and Barclays.
The transaction, initially announced in June, involves the acquisition of Nagarro SE by Persistent Systems' subsidiary Galaxy Germany, making it one of the largest overseas acquisitions by an Indian IT services company.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
