The board has given its approval for long-term debt financing not exceeding $1,250 million through external commercial borrowing (ECB), non-convertible debentures (NCDs), and other similar instruments. The same would be in one or more tranches, subject to the approval of company members and other regulatory approvals as required.
The board may also consider fund raising of up to $450 million via 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. The same would also be in one or more tranches, subject to the company members’ and regulatory approvals as required.
The combination of the two financing options will not exceed $1,250 million, the company said.
An equity fundraise of $450 million can cause a dilution of 4.8% at the current market price.
At the end of the June quarter promoter entities held 30.29% stake in Persistent Systems while public shareholding was at 69.04%, as per data available on the stock exchanges.
Promoter Anand Suresh Deshpande held 29.02% stake among the promoter entities, while mutual funds held 21.32%, insurance companies held 7.42%, retail investors held 10.43% while non-institutional investors held 3.53%, the data stated.
The board’s fund raise approval comes just a couple of months after the company announced its acquisition of Nagarro SE for €1,27 billion.
On June 27, Persistent Systems said it inked a business combination agreement with the firm to form the “Persistent-Nagarro Group” aimed at creating a global AI-led digital engineering company.
Shares of Persistent Systems were trading 2.8% lower at ₹5530 apiece at 9.17 am on Thursday. The stock has declined 11.9% this year, so far.
