Now Reading: Persistent Systems launches Rs 4,265-crore QIP at Rs 5,550 floor price
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Persistent Systems launches Rs 4,265-crore QIP at Rs 5,550 floor price
Persistent Systems launches Rs 4,265-crore QIP at Rs 5,550 floor price
The Story in Brief
Persistent Systems has launched a qualified institutional placement (QIP) to raise up to $450 million (about Rs 4,265 crore). The company's board-appointed committee approved the opening of the issue on 21 October.
The floor price has been set at Rs 5,550 per equity share, in line with SEBI regulations. A discount of up to 5% on the floor price may be offered, subject to applicable norms and shareholder approval. The final issue price will be determined in consultation with the book-running lead managers, JP Morgan India, IIFL Capital Services and HSBC Securities and Capital Markets (India).
The fundraising follows a special resolution passed by shareholders on 5 October. The QIP comes after Persistent Systems reported its 26th consecutive quarter of revenue growth for the September quarter, with revenue from operations rising 30.3% year-on-year to Rs 4,663.9 crore.
Indian Opinion Analysis
The QIP gives Persistent Systems a fresh war chest of Rs 4,265 crore just as it pursues the acquisition of Nagarro, for which it booked a Rs 185.34-crore exceptional expense that dragged reported net profit down to Rs 351.51 crore. The timing, right after the 26th straight quarter of revenue growth, signals confidence in raising capital from institutional buyers at a premium. What remains unresolved is how much discount the company will actually offer on the floor price, and how quickly the issue closes given the current market conditions.
Source: cnbctv18.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
