---
title: "Persistent raised ₹11,865 crore in 11 days for Nagarro; 64% of it is debt at about 9%"
summary: "How Persistent Systems is paying for Germany’s Nagarro: the share sale, debentures and commercial paper of 26 October to 5 November, what they cost, and what is still open."
url: https://www.thetechbag.com/blog/persistent-nagarro-financing-debt-equity
format: Note
desk: "Markets & the AI economy"
region: India
published: 2026-11-09
facts_checked: 2026-11-09
author: TechBag (The TechBag Journal)
tags: ["Persistent Systems","Nagarro","acquisition","takeover offer","QIP","non-convertible debentures","commercial paper","bridge loan","Barclays","Crisil","ICRA","IT services","financing"]
cover: https://www.thetechbag.com/blog/covers/persistent-nagarro-financing-debt-equity.png
---

# Persistent raised ₹11,865 crore in 11 days for Nagarro; 64% of it is debt at about 9%

*How Persistent Systems is paying for Germany’s Nagarro: the share sale, debentures and commercial paper of 26 October to 5 November, what they cost, and what is still open.*

Note · Markets & the AI economy · By TechBag · Published 2026-11-09 · Facts checked 2026-11-09 · Canonical: https://www.thetechbag.com/blog/persistent-nagarro-financing-debt-equity

Persistent Systems allotted ₹11,865 crore of new securities in the 11 days to 5 November: ₹7,000 crore of debentures at 8.95%, shares worth ₹4,264.6 crore and ₹600 crore of commercial paper at 8.75%.[1][2][3] All of it is for one purchase, Nagarro SE of Munich, for which Persistent announced an offer of €81 a share in cash in June and has since secured 94.04%.[4][5][14] The sum is about 2.5 times the ₹4,664 crore of revenue Persistent earned last quarter and, at NSDL’s ₹95.25 to the dollar on 2 November, about US$1.25bn, the limit its shareholders approved on 5 October.[6][8][12]

## What it raised, and why at the parent

**Figure: Persistent raised 36% of the money in shares and 64% in debt, most of it due in four or five years**

*Securities allotted for the Nagarro purchase, ₹ crore, 26 October to 5 November 2026*

New shares (QIP)

4,265 ₹ crore

Debentures, 5-year

2,025 ₹ crore

Debentures, 4-year

1,975 ₹ crore

Debentures, 3-year

1,500 ₹ crore

Debentures, 2-year

1,500 ₹ crore

Commercial paper, 1-year

600 ₹ crore

|  | Value (₹ crore) |
| --- | --- |
| New shares (QIP) | 4,265 |
| Debentures, 5-year | 2,025 |
| Debentures, 4-year | 1,975 |
| Debentures, 3-year | 1,500 |
| Debentures, 2-year | 1,500 |
| Commercial paper, 1-year | 600 |

Source: Persistent Systems filings with NSE, 26 October to 5 November 2026 · as of 5 November 2026 · All debentures pay 8.95%. Commercial paper at face value; ₹551.7 crore was received

The money replaces a stopgap. Persistent arranged a bridge loan of up to €1.4bn for 18 months; in September it told shareholders it must be replaced with long-term financing, up to US$1,250m in all, of which no more than US$450m in equity.[7] It raised it at the parent for a stated reason: it has promised not to sign a domination agreement with Nagarro for two years, so it “will have limited access to the cash-flows of Nagarro during that period”. Nagarro’s own revolving credit, about €290m drawn, stays with Nagarro.[7]

Of the debentures, ₹4,500 crore are backed by a pledge over Nagarro’s shares and the account holding the proceeds; ₹2,500 crore are unsecured.[2] The share sale added 76.8 lakh shares at ₹5,550, 3.66% below the ₹5,761 floor price, lifting the share count by 4.9%.[1]

## What it costs

TechBag countAbout ₹675 crore a year in interest, before tax

8.95% on ₹7,000 crore is ₹626.5 crore; the commercial paper’s discount adds ₹48.3 crore. That compares with ₹639 crore of pre-tax profit last quarter before Nagarro costs. Both are before tax. It leaves out Nagarro’s earnings, income on money not yet spent, and any hedging; our arithmetic, not a company figure.[2][3][8][13]

On 15 October the finance chief, Vinit Teredesai, told analysts to assume a cost of “between 5 to 6% on a net basis”, before the debt was raised.[8] He did not define net. After tax at the quarter’s 22.5% rate, 8.95% is about 6.9%, by our arithmetic. The debt is in rupees and the price is in euros; the filings we read do not say whether that is hedged.

The deal has already reached the profit line. Net profit fell 27.2% from the previous quarter to ₹351.5 crore; operating profit after tax, which leaves out ₹185.34 crore of Nagarro costs (₹143.6 crore after tax, by our arithmetic), rose 2.5% to ₹495.2 crore.[6][8] Those costs (advisers, bridge commitment fees, lawyers, regulatory filings) are expected to reach about US$50m in all over three to four quarters.[8]

## What is still open

The tendered shares have not yet been paid for. Persistent has secured 94.04% through a purchase agreement with Lantano Beteiligungen (22.10%) and two tender periods (61.15% and 10.79%), and settlement waits on the remaining offer conditions.[5] On 15 October those were merger or investment clearances in Austria and Spain and the Reserve Bank of India’s approval.[8] It expects to close by the end of March 2027, and intends to squeeze out the remaining holders and delist Nagarro from Frankfurt.[8][9]

Persistent has published no total for the offer. At €81 for about 1.24 crore shares, by the filed tender percentages, the equity comes to about €1.0bn.[5][4] Crisil rates the debentures AA+ on “Rating Watch with Developing Implications”; ICRA rates them AA+ on “Rating Watch with Negative Implications” and the commercial paper A1+.[10][11] Those watches, and the first quarter that carries the interest, are the next numbers to read.

How we did this

Figures as of 9 November 2026, 7pm IST

Figures are from Persistent’s own filings with NSE, converted from ₹ million or billion to crore. ₹11,865 crore counts the commercial paper at its ₹600 crore face value; ₹551.7 crore was received, making ₹11,816 crore in cash. The dollar figure uses NSDL’s rate of ₹95.2492 for 2 November. Interest, the offer value and the share count (7,568,145 shares being 61.15%) are our arithmetic. The offer document at galaxy-offer.com could not be read by our tools. The finance chief said the remaining Nagarro costs would come over “the next two quarters” in his remarks and “the next 3 to 4 quarters” in answer to a question. Nothing here is a view on the price paid.

Spotted an error? Write to us; corrections are published at the foot of the piece.

Sources

1. [Persistent Systems, allotment of equity shares under the QIP](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_26102026232529_PersistentSEOutcomeAllotmentofsharesOct262026IIFLSigned.pdf) — 26 October 2026 Issue closure: separate filing the same day.
2. [Persistent Systems, allotment of non-convertible debentures](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_04112026150907_PersistentSEOutcomeAllotmentofNCDsNovember42026Signed.pdf) — 4 November 2026
3. [Persistent Systems, allotment of commercial paper](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_05112026233015_PersistentSEOutcomeAllotmentofCPsNovember52026signed.pdf) — 5 November 2026
4. [Persistent and Nagarro sign Business Combination Agreement (press release)](https://www.persistent.com/wp-content/uploads/2026/06/press-release-persistent-and-nagarro-sign-business-combination-agreement-to-form-the-persistent-nagarro-Group.pdf) — 26 June 2026
5. [Persistent Systems, update on the voluntary public takeover offer for Nagarro SE](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_09102026173743_PSLUpdateonVoluntaryPublicTakeoverOfferofNagarroSigned.pdf) — 9 October 2026
6. [Persistent Systems, press release on Q2 FY27 results](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_15102026161221_SEIntimationpressrelease15102026Sd.pdf) — 15 October 2026
7. [Persistent Systems, notice of Extraordinary General Meeting (held 5 October 2026)](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_12092026122147_PersistentEGMNoticeSE_IntimationSigned.pdf) — 12 September 2026
8. [Persistent Systems, transcript of the Q2 FY27 earnings call](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_23102026204328_PSLTranscriptSubmissionOctober2026Sd.pdf) — filed 23 October 2026 Call of 15 October 2026.
9. [Persistent's Takeover Offer for Nagarro Successful (filed with NSE)](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_22092026171156_SEIntimationUpdateonVoluntaryPublicOfferofNagarro-signed.pdf) — 22 September 2026
10. [Persistent Systems, credit rating intimation (Crisil, non-convertible debentures)](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_21102026205156_PSLIntimationofCreditRatingNCDsd.pdf) — 21 October 2026
11. [Persistent Systems, credit rating intimation (ICRA)](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_22102026230112_PSLCreditRatingIntimationICRA22102026Sd.pdf) — 22 October 2026
12. [NSDL, Daily Trends in FPI Investments, November 2026 (conversion rate for 2 November)](https://www.fpi.nsdl.co.in/web/Reports/Monthly.aspx) — 2 November 2026
13. [Persistent Systems, outcome of board meeting: audited results for the quarter to 30 September 2026](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_15102026155331_PSLBMOutcomeOctober152026159signed.pdf) — 15 October 2026
14. [Persistent Systems, Special Committee outcome: terms of the debentures and commercial paper for the Nagarro acquisition](https://nsearchives.nseindia.com/corporate/PERSISTENTUSER1_16102026105516_PersistentSystemsStExchangeOutcomeOctober162026Signed.pdf) — 16 October 2026

**Disclosure.** TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.

**Read this next:** [Six of nine mid-tier IT firms grew 10%-plus in rupees; in dollars, only two did](https://www.thetechbag.com/blog/mid-tier-indian-it-growth-rupee-flatters) — Persistent against eight peers: nine mid-tier IT firms in rupees and in dollars, six above 10% in rupees and only two in dollars.

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