Shares of Persistent Systems Ltd. declined on Thursday, October 22, after the company launched a qualified institutional placement (QIP) to raise up to ₹4,265 crore.
The company informed the exchanges of the opening of the QIP on Wednesday evening after market closing hours.
Its special committee of board of directors has also approved the floor price of ₹5,550 per share for the issue. This is a 5.25% discount from the price at which shares of Persistent Systems had closed during Wednesday’s trading session.
The full completion of the QIP exercise, Persistent Systems is expected to dilute 4.9% of its pre-issue outstanding equity share capital.
Persistent Systems’ QIP announcement a week after it reported its second quarter results. Its revenue beat estimates but margins were a miss and its profit after tax (PAT) was hit by the Nagarro acquisition impact.
In June 2026, Persistent Systems had announced the acquisition of Nagarro SE with a total outlay of $1.45 billion. The initial bridge is now refinanced via a combination of rupees debt sales and QIP.
In its post-earnings investor presentation last week, Persistent Systems said it has agreed to acquire 100% of Nagarro at an enterprise value of €1.27 billion, based on €81 per share in cash.
In June, Persistent Systems said it had already secured 21% stake in Nagarro via a share purchase agreement. On September 22, it said it had secured a total of 83.25% of Nagarro’s outstanding share capital, and by October 6, it had secured 94.04% stake in the company.
The company expects the transaction to close in the fourth quarter of the calendar year 2026 or the first quarter of the calendar year 2027, subject to regulatory approvals from the Reserve bank of India as well as foreign investment authorities in Spain and Austria.
Shares of Persistent Systems were trading 0.6% lower at ₹5,826 apiece at 10.50 am on Thursday. The has risen 8.6% in the past month thereby trimming its year-to-date decline of 7.3%.
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