Debasis Mohapatra
Bengaluru, 4 September 2026
Persistent Systems on Thursday said the company is planning to raise up to $1.25 billion through a mix of financial instruments.
In an exchange filing, the company informed that its board has approved long-term debt financing of up to $1.25 billion through external commercial borrowings (ECB), non-convertible debentures (NCDs) and other similar instruments.
According to the company, the fundraising may be undertaken in one or more tranches, subject to shareholder and regulatory approvals.
Reason behind such large fund raise points towards its recent large acquisition.
Nagarro Acquisition:
In June this year, Persistent Systems has agreed to acquire all outstanding shares of German digital engineering firm Nagarro SE through its subsidiary Galaxy Germany Holding for €81 per share in cash, which translates into around $1.45 billion. This was the largest overseas acquisition of the Pune-headquartered IT firm.
To fund this acquisition, Persistent Systems had availed a bridge loan facility up to EUR 1.4 billion from Barclays and others.
As this is a bridge loan facility, it has to be paid through long-term funds arranged by the IT services firm. So, the current plan of Persistent Systems to raise up to $1.25 billion is intended to repay the bridge loan and convert it into a long-term debt arrangement.
Meanwhile, the company has also said that it may consider raising up to $450 million through equity-linked instruments. However, total fund raise would not exceed $2.5 billion.
The company reported a total cash and cash equivalents of $248 million by the end of FY26.
