Athira Sethu
Kochi, 22 Oct 2026
The shares of Persistent Systems Ltd. came under pressure on Thursday, October 22, following the company’s plans to raise funds worth up to ₹4,265 crore via a Qualified Institutional Placement (QIP). QIP refers to a scheme that allows a listed company to raise capital from large institutions by issuing additional shares.
The company notified the stock exchanges of the launching of the QIP on the evening of Wednesday, following the closing of the stock market. A floor price of ₹5,550 per share was fixed by the board committee for the offer. The floor price is 5.25% below the closing price of Persistent Systems shares on Wednesday.
Upon raising the fund, the company anticipates an increase in the total number of shares, thereby causing dilution of existing shareholding percentage. The expected dilution stands at about 4.9% of its pre-issue equity share capital.
Raising Money Following the Quarter’s Result
The QIP was announced just a week following Persistent Systems’ release of its second-quarter results. The company had revenues that were above what was projected, but its margins fell short of expectations. Persistent Systems’ profits after taxes were also impacted by the expenses and other considerations in its acquisition of Nagarro SE.
In June 2026, Persistent Systems revealed plans to acquire Nagarro SE in a deal valued at $1.45 billion. Persistent Systems agreed to buy the business as a whole at an enterprise value of €1.27 billion, with the offer price being €81 per share.
This deal forms an important component of Persistent Systems’ business expansion plans. To fund the transaction, the firm first entered into bridge financing, which is an interim loan to fulfill urgent funding requirements. The company is now refinancing the bridge financing by way of rupee denominated debt and QIPs.
Persistent Systems Raises Its Equity Holding in Nagarro
Persistent Systems has steadily raised its equity share in Nagarro. In June, it got an agreement for a 21% equity holding in Nagarro. The company raised its equity share to 83.25% by September 22. On October 6, it made an announcement saying it has gotten 94.04% equity shareholding in the company.
It is expected that the acquisition will be made by Persistent Systems in the fourth quarter of 2026 or the first quarter of 2027. But there is a condition that the transaction requires getting approvals from the Reserve Bank of India and foreign investors’ approval from Spain and Austria.
Share Price Trend
On Thursday morning at 10:50 a.m., Persistent Systems’ shares were down 0.6% to ₹5,826 per share. The stock has risen 8.6% during the last one month but it has fallen 7.3% during the year.
In all, the QIP will assist Persistent Systems to manage its funding needs for the acquisition of Nagarro.
