Persistent Systems Ltd. announced a revision to the floor price for its Qualified Institutional Placement (QIP) to Rs 5,761 per equity share. This adjustment comes after the IT services company's board approved a plan to raise up to $450 million through the QIP.
The company's shares reacted positively to the news, rising 0.34% to Rs 5,887.50 during Thursday's trading session. This compares to its previous close of Rs 5,860. The stock commenced trading for the day at Rs 5,755.05 and reached an intra-day high of Rs 5,887.50.
Details of the QIP and Pricing
The special committee of Persistent Systems approved the opening of the QIP on October 21 and subsequently adopted the preliminary placement document. The revised floor price of Rs 5,761 per share was confirmed in an exchange filing, adhering to the pricing formula stipulated by the Securities and Exchange Board of India (SEBI).
Persistent Systems has the discretion to offer investors a discount of up to 5% on this revised floor price. The precise issue price will be finalized in consultation with the book-running lead managers, which include J.P. Morgan India, IIFL Capital Services, and HSBC Securities and Capital Market (India).
Fundraising Target and Other Developments
The QIP aims to raise approximately $450 million, an amount equivalent to about Rs 4,264.61 crore based on the RBI/FBIL reference rate from October 19. The final capital raised will depend on both the determined issue price and the total number of shares allocated to institutional investors.
In a separate announcement on October 21, CRISIL assigned a rating of 'CRISIL AA+; Rating Watch with Developing Implications' to Persistent Systems' proposed non-convertible debentures. It's important to note that this is a distinct debt-related development and is not directly associated with the ongoing QIP.