Persistent Systems to raise ₹8,000cr bonds for Nagarro stake purchase
Business
Persistent Systems is gearing up to raise up to ₹8,000 crore (about $842 million) by issuing rupee bonds soon.
The main goal? To help pay for its recent purchase of a huge stake in Nagarro, a German tech services company.
These bonds will mature in one to five years and the money will go toward refinancing a bridge loan taken earlier in the year to acquire Nagarro.
Persistent needs $1.25bn for Nagarro buyout
Altogether, Persistent needs around $1.25 billion to fully acquire Nagarro and take it private.
While they first planned to use only debt, they're now adding up to $450 million in equity funding too.
Rating agency ICRA has given these bonds an AA-plus rating, basically a thumbs-up for Persistent's financial health and ability to handle this big move.