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The debt could be raised as early as next week as the IT company aims to complete its acquisition announced in June.
“This is the second part of the fundraising after the company raised ₹4,264 crore through a QIP (qualified institutional placement) of shares earlier this week. The NCDs will be of various tenures matching the cash flows of the company starting from a year going up to five years with an average maturity of about three years,” said a person familiar with the details.
The Patna Municipal Corporation is set to launch ₹200 crore worth of municipal bonds, with bids opening on October 30. This move marks Bihar’s inaugural bond issuance, sparking renewed enthusiasm for municipal bonds. Meanwhile, Kanpur Nagar Nigam is also gearing up to issue ₹125 crore soon. Early interest from investors like HUDCO and NaBFID indicates a growing momentum in the bond market, supported by governmental efforts to boost urban financing.
The money raised through the NCDs will replace the short-term, 18-month bridge financing commitment the company had secured from Barclays. The NCDs are likely to be priced between 8.75% and 9.50% and underwritten by HSBC and Barclays. Both banks declined to comment.
“There is a small part of the deal that will most likely include a one-year lot of commercial paper with the rest being NCDs. The longer tenure proceeds will most likely be earmarked for general corporate purposes,” said a second person aware of the details.
In June, Persistent launched a voluntary public takeover offer to acquire all outstanding shares of Nagarro SE through its subsidiary Galaxy Germany in what is one of the biggest overseas acquisitions by an Indian IT services company.Read more: These 7 private and public banking stocks have an upside of up to 27% in one year, according to analysts
Earlier this month, Persistent announced that the company had secured 94% of Nagarro shares after receiving shareholders offers representing approximately 71.94% to add to the approximately 22.10% stake already secured by Persistent earlier.
“The total value that Persistent has to pay comes to around $1.25 billion out of which $450 million has been raised via a QIP. The rest of the money will be raised by debt as the company does not want to keep a short term bridge loan on its books which will have to be refinanced ultimately,” said a third person aware of the details.
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https://economictimes.indiatimes.com/markets/bonds/persistent-systems-to-raise-rs-6000-crore-via-ncds-for-nagarro-deal/articleshow/135285377.cms
