Persistent Systems Launches ₹4,265 Crore QIP At ₹5,550 Floor Price Per Share, With Up To 5% Discount Allowed

Persistent Systems has opened a qualified institutional placement (QIP) to raise up to US$450 million, equivalent to approximately ₹4,265 crore. The IT services company has fixed the floor price at ₹5,550 per equity share. The fundraising will allow the company to raise capital by issuing shares to eligible institutional investors.

The company's special committee approved the opening of the issue, the floor price and the preliminary placement document on Wednesday, 21 October. The pricing has been determined under the applicable Securities and Exchange Board of India (SEBI) regulations.

Persistent Systems QIP: Issue Size And Share Price

The QIP is intended to raise up to US$450 million, equivalent to ₹42,646.10 million. This amount has been calculated using the reference exchange rate of ₹94.7691 per US dollar as of 19 October.

The floor price has been set at ₹5,550 per share. However, the company has the option to offer a discount of up to 5% on this price. Shareholders approved the discount provision through a special resolution on 5 October.

If the maximum permitted discount is applied, the issue price could be as low as ₹5,272.50 per share. The final price will be decided by the company in consultation with the appointed book-running lead managers.

Who Will Manage The QIP Issue?

Persistent Systems will work with three book-running lead managers for the share placement: J.P. Morgan India, IIFL Capital Services and HSBC Securities and Capital Market (India).

The final issue price and the number of equity shares to be allotted will depend on the terms finalised for the placement. The company has also kept the trading window closed for promoters, directors, key managerial personnel and other designated or connected persons until further notice, in line with its insider-trading code.

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