Persistent Systems plans $1.25B raise after €1.27B Nagarro acquisition
Persistent Systems is gearing up to raise about $1.25 billion through a mix of debt and equity instruments.
The board gave the green light on September 3, but the plan still needs shareholder and regulatory approval.
This fundraising comes a couple of months after its major €1.27 billion acquisition of Nagarro SE on June 27, 2026, a move to create the new AI-focused "Persistent-Nagarro Group."
Persistent Systems may issue $450 million convertibles
Part of the money, up to $450 million, may come from securities or eligible instruments convertible into equity shares or a combination through foreign currency convertible bonds (FCCB), preferential issue, qualified institutional placement (QIP) or any other permissible mode, which could dilute existing ownership by around 4.8% if done at current prices.
Promoters currently hold just over 30%, with most shares owned by public investors like mutual funds and insurance companies.
The stock has been a bit up and down lately, rising 2.2% last month but down 9.3% for the year so far, as Persistent bets big on its new AI-driven direction.