Persistent Systems’ Board of Directors has approved a proposal to raise capital up to USD 1,250 million (approximately ₹10,300 crore). This will be achieved through a combination of long-term debt financing, including External Commercial Borrowing and Non-Convertible Debentures, and potentially fundraising through equity instruments like FCCBs, preferential issues, or QIPs. The approvals are subject to shareholder and regulatory consent.
Persistent Systems Board Authorizes Major Capital Raise
The Board of Directors at Persistent Systems has given the go-ahead for substantial fundraising initiatives, aiming to secure up to USD 1,250 million. This strategic move, approved during a board meeting held on September 2, 2026, is designed to bolster the company’s financial resources for future growth and operational expansion. The decision is pending necessary approvals from the company’s shareholders and relevant regulatory bodies.
Fundraising Strategy Details
The proposed capital infusion will leverage a multi-faceted approach. A significant portion can be raised through long-term debt financing, which may include External Commercial Borrowing (ECB) and the issuance of Non-Convertible Debentures (NCDs), or similar financial instruments. The aggregate amount for this debt financing is capped at USD 1,250 million.
Furthermore, the company may consider fundraising of up to USD 450 million through various equity-linked instruments. These include securities such as equity shares, debt securities convertible into equities, Foreign Currency Convertible Bonds (FCCB), Preferential Issues, or Qualified Institutional Placements (QIP). The exact combination of these financing options, whether debt or equity, will not exceed the overarching limit of USD 1,250 million.
Shareholder and Regulatory Approvals Pending
Key to these fundraising plans is the requirement for approval from the Members of the Company. Additionally, Persistent Systems must secure all necessary regulatory and statutory approvals. The company has also initiated the process for altering its Articles of Association, specifically amending Article 12 related to the ‘Further Issue of Shares’, which also requires member and regulatory consent.
Source: BSE
