Persistent Systems launches share placement worth ₹4,265 crore with floor price of ₹5,550

what happened

Persistent Systems has started a qualified institutional placement (QIP) of up to $450 million, roughly ₹4,265 crore. TradingView reports, citing the company's exchange filing, that a board committee approved the opening of the issue on October 21. The floor price is fixed at ₹5,550 per share under SEBI rules, and a discount of up to 5% may be offered, subject to applicable norms and shareholder approval. The final price will be set together with the placement's lead managers.

The move follows a September-quarter report in which revenue rose 30.3% year on year to ₹4,663.9 crore, or 20% to $487.6 million in dollar terms. Profit excluding exceptional items grew 5% to ₹495.15 crore, but reported net profit fell to ₹351.51 crore after a ₹185.34 crore exceptional charge tied to the proposed Nagarro acquisition. Moody's also reported the opening of the issue and the floor price.

why it matters

The placement comes as the company pursues its proposed Nagarro acquisition, which has already weighed on reported earnings. Additional shares will increase the number in circulation, which matters for shareholders and for how investors value India's IT sector.

market impact

Persistent Systems: new shares from the placement may put pressure on the company's stock price.

tags

instruments