Persistent Systems to raise Rs 6,000 crore via NCDs for Nagarro deal

Persistent Systems is preparing to raise Rs 6,000 crore through non-convertible debentures as it moves toward completing its acquisition of Nagarro. The debt fundraising could begin as early as next week.

Funding linked to June acquisition announcement

The proposed issue is intended to support the completion of the Nagarro deal, which Persistent Systems announced in June. The plan places debt financing at the centre of the company’s next step in executing the transaction.

Non-convertible debentures, or NCDs, are debt instruments used to raise funds from investors. In this case, the proposed Rs 6,000 crore issue would provide financing for the acquisition rather than equity-based funding, according to the available information.

What happens next

The debt could be raised as early as next week. That timing makes the proposed NCD issue the immediate financing development connected with Persistent Systems’ Nagarro acquisition.

Further details on the structure of the issue, its terms and the broader financial impact were not provided.