Persistent Systems Limited has approved the allotment of 700,000 INR denominated, senior, rated, listed, and redeemable non-convertible debentures (NCDs). The total value of this issuance is ₹70 billion, with each NCD having a face value of INR 100,000. This move is part of the company’s strategic financing efforts to support its growth and operational needs. The debentures will be listed on the National Stock Exchange of India Limited.
Persistent Systems Approves Significant NCD Allotment
Persistent Systems Limited has announced the outcome of a Special Committee meeting, confirming the approval for the allotment of 700,000 Non-Convertible Debentures (NCDs). This issuance is valued at an aggregate of ₹70 billion (INR 70,000 million), with each NCD having a face value of INR 100,000. The NCDs are senior, rated, listed, and redeemable, and will be allotted on a private placement basis.
Details of the Debenture Series
The allotment comprises six series of debentures, each with varying tenures and specific terms:
Series 1 Debentures
- Type: 8.95% Persistent Systems Limited 2028
- Size: 150,000 NCDs aggregating to INR 15,000 million
- Listing: National Stock Exchange of India Limited
- Tenure: 2 years from the date of allotment (Allotment: November 4, 2026; Maturity: November 4, 2028)
- Coupon/Interest: 8.95% per annum
- Security: Secured by a first ranking exclusive fixed charge, by way of hypothecation, over designated proceeds account and certain other assets, as well as pledges related to the merger of Galaxy Germany Holding SE and Nagarro SE.
Series 2 Debentures
- Type: 8.95% Persistent Systems Limited 2029
- Size: 150,000 NCDs aggregating to INR 15,000 million
- Listing: National Stock Exchange of India Limited
- Tenure: 3 years from the date of allotment (Allotment: November 4, 2026; Maturity: November 4, 2029)
- Coupon/Interest: 8.95% per annum
- Security: Secured by a first ranking exclusive fixed charge, by way of hypothecation, over designated proceeds account and certain other assets, as well as pledges related to the merger of Galaxy Germany Holding SE and Nagarro SE.
Series 3 Debentures
- Type: 8.95% Persistent Systems Limited 2030
- Size: 125,000 NCDs aggregating to INR 12,500 million
- Listing: National Stock Exchange of India Limited
- Tenure: 4 years from the date of allotment (Allotment: November 4, 2026; Maturity: November 4, 2030)
- Coupon/Interest: 8.95% per annum
- Security: Unsecured.
Series 4 Debentures
- Type: 8.95% Persistent Systems Limited 2031
- Size: 125,000 NCDs aggregating to INR 12,500 million
- Listing: National Stock Exchange of India Limited
- Tenure: 5 years from the date of allotment (Allotment: November 4, 2026; Maturity: November 4, 2031)
- Coupon/Interest: 8.95% per annum
- Security: Unsecured.
Series 5 Debentures
- Type: 8.95% Persistent Systems Limited 2030
- Size: 72,500 NCDs aggregating to INR 7,250 million
- Listing: National Stock Exchange of India Limited
- Tenure: 4 years from the date of allotment (Allotment: November 4, 2026; Maturity: November 4, 2030)
- Coupon/Interest: 8.95% per annum
- Security: Secured by a first ranking exclusive fixed charge, by way of hypothecation, over designated proceeds account and certain other assets, as well as pledges related to the merger of Galaxy Germany Holding SE and Nagarro SE.
Series 6 Debentures
- Type: 8.95% Persistent Systems Limited 2031
- Size: 77,500 NCDs aggregating to INR 7,750 million
- Listing: National Stock Exchange of India Limited
- Tenure: 5 years from the date of allotment (Allotment: November 4, 2026; Maturity: November 4, 2031)
- Coupon/Interest: 8.95% per annum
- Security: Secured by a first ranking exclusive fixed charge, by way of hypothecation, over designated proceeds account and certain other assets, as well as pledges related to the merger of Galaxy Germany Holding SE and Nagarro SE.
General Terms and Conditions
The coupon payment dates for Series 1, 2, 5, and 6 are scheduled annually from November 4, 2027, with principal and final coupon payments on their respective maturity dates. Series 3 and 4 have annual coupon payments from November 4, 2027, and November 4, 2027, respectively, with principal and final coupon payments on their respective maturity dates. All debentures carry an annual coupon rate of 8.95%. The company has also outlined terms related to delays in payment, including accrual of interest at a higher rate and potential additional interest in case of default or non-compliance with debenture trust deed execution.
Source: BSE
