Persistent Systems Approves Plans To Raise Up To Rs 11,800 Crore

Persistent Systems Ltd.'s board has approved plans to raise up to $1.25 billion (Rs 11,809 crore)through debt and equity-linked instruments, opening the possibility of a fundraise that could include equity dilution.

The company may raise up to $1.25 billion through long-term debt financing and consider a separate $450 million fundraising through equity shares, convertible securities or other eligible instruments, according to a stock exchange filing on Wednesday. 

Equity-linked fundraising in focus

The proposed $450 million issue could be made through foreign currency convertible bonds, a preferential issue, a qualified institutional placement or other permitted routes, the company said. The filing said the fundraising could involve "equity shares, debt securities convertible into equities" or other securities convertible into equity shares. 

Persistent said the debt component could include external commercial borrowings, non-convertible debentures and similar instruments. The combined amount raised through the debt and equity-linked options will not exceed $1.25 billion. 

Issue details yet to be decided

The proposals require approval from Persistent's members as well as applicable regulatory and statutory clearances. The company said the terms of any preferential issue, including investors and issue price, will be decided by its Committee of Executive Directors after the required approvals. 

Persistent has also approved an amendment to its Articles of Association relating to the "Further Issue of Shares", subject to member and regulatory approvals. 

The company said it will submit the notice for the extraordinary general meeting to the stock exchanges in due course. 

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.