Persistent Systems has opened a qualified institutional placement (QIP) to raise up to $450 million (approximately Rs 4,265 crore), with the floor price revised to Rs 5,761 per equity share. The fundraise is part of the Pune-based IT services company’s financing plan for its proposed acquisition of German technology firm Nagarro.
In its October 21, 2026, exchange filings, Persistent initially announced a floor price of Rs 5,550 per share before revising it upwards to Rs 5,761. The company can offer institutional investors a discount of up to 5%, subject to the approved terms. The final issue price will be decided in consultation with book-running lead managers JP Morgan India, IIFL Capital Services and HSBC Securities and Capital Market (India).
QIP to Support Nagarro Acquisition
The equity raise is a key part of Persistent’s plan to finance the Nagarro deal. The company has secured approximately 94.04% of Nagarro’s share capital and voting rights, excluding treasury shares, following its takeover offer.
Persistent’s acquisition plan combines equity funding with borrowings. Reuters reported that the total funding requirement to acquire 100% of Nagarro is around $1.25 billion, with debt also expected to play a major role in financing the transaction.
The acquisition is intended to strengthen Persistent’s engineering capabilities, expand its geographical presence and increase its global delivery capabilities. The QIP will help raise capital for the deal, although the final issue price and number of shares allotted will determine the extent of equity dilution for existing shareholders.
Revenue Grows 30.3%, but Reported Profit Falls
The fundraise follows a strong revenue performance in the September 2026 quarter. Persistent reported revenue of Rs 4,663.9 crore in Q2 FY27, up 30.3% year-on-year. Revenue in US dollar terms rose 20% to $487.6 million, marking the company’s 26th consecutive quarter of revenue growth.
However, reported profit after tax fell 25.4% year-on-year to Rs 351.51 crore. The decline came after Persistent recognised an exceptional expense of Rs 185.34 crore related to the proposed Nagarro acquisition. Excluding exceptional items, profit after tax increased 5% to Rs 495.15 crore.
The contrasting figures highlight the balance Persistent must manage as it pursues acquisition-led growth: maintaining revenue momentum while handling transaction costs, financing requirements and integration.
Leadership and What Investors Should Watch
Persistent Systems was founded by Anand Deshpande, who serves as its founder and chairman emeritus, while Sandeep Kalra is the company’s chief executive officer and executive director. The leadership team is steering the company through a major expansion phase as it combines organic growth with the Nagarro acquisition.
Investors will be watching the final QIP price, institutional participation and resulting share dilution, alongside the progress of the Nagarro transaction. The quality of integration and the company’s ability to convert higher revenue into sustained profitability will also be important measures of the deal’s long-term value.
