Persistent Systems launches ₹4,265-crore QIP; sets floor price at ₹5,550 per share

Persistent Systems has launched a qualified institutional placement to raise up to $450 million , with the company's board-appointed committee approving the issue's opening on October 21.The company has fixed the floor price at ₹5,550 per equity share in line with SEBI regulations. It may offer a discount of up to 5% on the floor price, subject to applicable norms and shareholder approval.The final issue price will be determined in consultation with the book-running lead managers, namely JP Morgan India, IIFL Capital Services and HSBC Securities and Capital Markets , according to the company's exchange filing.The fundraising follows shareholder approval secured through a special resolution passed on October 5. October 21 has been designated as the relevant date for determining the floor price under SEBI's ICDR regulations.The QIP comes days after Persistent Systems reported its 26th consecutive quarter of revenue growth in the September quarter.

Revenue from operations rose 30.3% year-on-year to ₹4,663.9 crore, while revenue in US dollar terms increased 20% to $487.6 million.Profit after tax, excluding exceptional items, rose 5% to ₹495.15 crore. Reported net profit, however, declined to ₹351.51 crore after the company recognised a ₹185.34-crore exceptional expense related to its proposed acquisition of Nagarro.