Rs 8,350 crore crash in Persistent shares explained: Why investors are worried about Nagarro deal

Persistent Systems shares fell to a fresh 52-week low of Rs 4,312 on the NSE, wiping out about Rs 8,350 crore in market value and heading for their worst single-day loss since October 2018. The selloff followed Persistent's $650 million voluntary public takeover offer for German-listed Nagarro, a deal nearly 67 percent of its existing size, under which it has already acquired a 21 percent stake and plans to delist Nagarro from the German exchange. Brokerages were split, with Nomura and Emkay staying constructive on strategic rationale (Neutral and Add, target Rs 5,200) while Equirus and ICICI Securities flagged stretched valuation, EPS dilution, execution risk and higher balance-sheet leverage (Reduce, target Rs 5,010; Hold, target Rs 4,930).