Persistent Systems opens Rs 4,265-crore QIP

Persistent Systems opened a qualified institutional placement on Wednesday, October 21, to raise up to $450 million, or approximately Rs 4,265 crore, with a floor price of Rs 5,550 per equity share. Economic Times Markets reported, citing the IT company's stock-exchange filing, that a special committee of its board approved the issue's opening, floor price and preliminary placement document.

The floor price follows the pricing formula under SEBI's Issue of Capital and Disclosure Requirements regulations. Persistent may offer a discount of up to 5% to that price under a special resolution approved by shareholders on October 5. The company will determine the final issue price in consultation with book-running lead managers JP Morgan India, IIFL Capital Services and HSBC Securities and Capital Market (India).

The filing put the maximum rupee-equivalent issue size at Rs 42,646.10 million, using the October 19 RBI/FBIL reference exchange rate of Rs 94.7691 per US dollar. The announced amount is a fundraising ceiling, not proceeds already raised; the opening of the placement does not establish its final pricing or subscription outcome.