- Persistent Systems revised QIP floor price to Rs 5,761 per share from Rs 5,550
- The company plans to raise about $450 million or Rs 4,264.61 crore through the QIP
- Discount up to 5% on floor price allowed per SEBI rules and shareholder approval
Persistent Systems Ltd. has revised the floor price for its QIP to Rs 5,761 per equity share, according to its recent exchange filing. The micap IT services firm had initially announced a floor price of Rs 5,550 per share when it approved the opening of the QIP earlier in the day. Persistent Systems plans to raise up to $450 million, equivalent to approximately Rs 4,264.61 crore, through the QIP. The company informed the stock exchanges on Wednesday that its special committee of the board approved the opening of the issue, the floor price and the preliminary placement document.
The company may offer a discount of up to 5% on the floor price, at its discretion, in accordance with SEBI regulations and the special resolution approved by shareholders on October 5. The final issue price will be determined by Persistent Systems in consultation with the book-running lead managers appointed for the QIP: JP Morgan India, IIFL Capital Services and HSBC Securities and Capital Market (India).
The company said the updated floor price has been determined under the pricing formula prescribed by SEBI's Issue of Capital and Disclosure Requirements regulations. Persistent Systems' board committee approved the opening of the QIP on Oct 21 and adopted the preliminary placement document and application form for the issue.
What Investors Should Watch
The revised floor price and the eventual issue price will be key details for investors tracking the capital raise. The final price, the number of shares issued and the response from institutional investors will help determine the extent of equity dilution arising from the QIP.
Persistent Systems has also said its trading window remains closed for promoters, directors, key managerial personnel, designated persons and connected persons until further notice.
The company has not disclosed the final issue price in the filings. The QIP proceeds will be based on the number of shares allotted and the final price determined for the issue.
Persistent Systems Q2 Results (Cons, QoQ)
Persistent Systems' net profit was down 27.1% quarter-on-quarter (QoQ) at Rs 352 crore, compared to Rs 483 crore in the preceding quarter. The revenue was up 8.4% to Rs 4,664 crore compared to Rs 4,303 crore in the previous quarter. The EBIT was up 1.57% to Rs 697.59 crore compared to Rs 686.8 crore, in the prior quarter. The Ebit margin contracted to 14.95% from 15.96% on a QoQ basis.
- Net Profit down 27.1% At Rs 352 crore Vs Rs 483 crore
- Revenue up 8.3% At Rs 4,664 crore Vs Rs 4,303 crore
- EBIT up 1.57% At Rs 697.59 crore Vs Rs 686.8 crore
- EBIT margin at 14.95% Vs 15.96%
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