Persistent Systems Ltd.'s shares fell as low as 3.32% in early trade after the board 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 shares lowest intraday level came in at Rs 5,501 apiece on the NSE, as against a 0.31% advance in the Nifty index on Thursday
The stock pared some losses to trade 1.7% lower at Rs 5,593.50 by 9:32 a.m.
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The company said it 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.
The fundraise come in the backdrop of Persistent Systems having recently acquired Nagarro for €1.27 billion. Though the company did not explicitly say that they will be using the fundraise to finance the Nagarro deal, they had earlier guided that it will be funded via debt.
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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.
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