India's Persistent falls as debt-funded Nagarro acquisition raises EPS concerns

Persistent Systems

23/09/2026 07:47

** Shares of Persistent Systems PERS.NS fall 1.9% to 5,264.5 rupees 
** Company secures an 83.25% stake in Germany-based IT firm Nagarro NA9n.DE, intends to pursue delisting of Nagarro's shares
** "Once ownership exceeds 90%, Persistent may have options under German law to squeeze out the remaining minority shareholders for cash," HSBC says
** Investec says Persistent has funded its Nagarro share acquisition through a $1.6 billion bridge loan with an 18-month tenure
** The brokerage expects any equity raise, including a potential QIP, only after the outcome of the additional acceptance offer becomes clear 
** It also estimates that higher debt costs amid global rate hikes could shave roughly 2% off EPS accretion from the deal
** YTD, PERS stock down 15.7%

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.Parmar@thomsonreuters.com;))