Persistent Systems bonds could raise more than ₹6,000 crore as the Indian IT company arranges financing for its planned acquisition of Germany’s Nagarro SE, according to people familiar with the financing.

Key Takeaways

  • The proposed debt could be raised as early as the week after October 29, 2026.
  • Persistent has already raised ₹4,264 crore through a share placement.
  • The proposed debt would replace an 18-month bridge financing commitment from Barclays.

Persistent Systems bonds and proposed financing

The non-convertible debentures are expected to have maturities ranging from one to five years, with an average of about three years, a person familiar with the details said.

The debt is likely to be priced between 8.75% and 9.50% and underwritten by HSBC and Barclays. A small portion may instead consist of one-year commercial paper, while proceeds from longer-tenure securities are likely to be earmarked for general corporate purposes, another person familiar with the details said. Both banks declined to comment.

The proposed borrowing would follow Persistent’s qualified institutional placement of shares earlier in the week, which raised ₹4,264 crore, or about $450 million. The total amount payable for the Nagarro acquisition is approximately $1.25 billion, according to a person familiar with the financing.

Nagarro offer status and conditions

Persistent announced the takeover in June through its subsidiary Galaxy Germany Holding SE, offering €81 in cash for each outstanding Nagarro share. Earlier in October, Persistent said it had secured approximately 94% of Nagarro shares, including shareholder tenders representing about 71.94% and an approximately 22.10% stake previously secured.

In August, Nagarro’s boards recommended accepting the offer. The company’s statement on the offer conditions listed a minimum acceptance threshold of 50% plus one share, as well as merger-control and foreign-investment approvals in several jurisdictions and clearance under Indian foreign-exchange law. Nagarro said at the time that closing was anticipated in the fourth quarter of 2026 or the first quarter of 2027.

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