Consider Persistent IPO for long term: RR Financial

RR Financial Consultants has come out with a research report on Persistent Systems' IPO. The broking firm says, investor with longer time horizon can consider this issue.

The initial public offering (IPO) of Pune based software product development company opened for subscription. The company will raise around Rs 157.17-168 crore at price band of Rs 290-310 per equity share via 54,19,706 equity shares issue.

The report says, "A strong outsourced software-products development player, considering the company’s strong performance in key operating metrics and its sound positioning and growth prospects of the segment where it operates. At Rs 310 (upper end of the price band), the share would trade at 12 times its likely 2009-10 per-share earnings on a post-offer equity base. This is at a discount to mid-tier IT companies such as InfoTech Enterprises, Sasken Communications and KPIT Cummins, which are partly comparable to Persistent Systems as being a pure OPD product company has no listed peers. Investor with longer time horizon can consider this issue."

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To read the full report click on the attachment