Persistent IPO clocks highest bid in 26 mths at 93.6 times

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Persistent IPO clocks highest bid in 26 mths at 93.6 times

The public issue of Pune-based software product development company Persistent Systems has received record subscription in 26 months.

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The public issue of Pune-based software product development company Persistent Systems has received record subscription in 26 months.

It got overwhelming response from investors, especially qualified institutional investors (QIBs). Overall, the issue has been oversubscribed 93.6 times, as per data available on the NSE website.

Earlier, Future Capital Holding's issue was subscribed over 133 times, which opened during January 11-16, 2008, just before the subprime crisis.

The 54,19,706 equity shares IPO, which closed today, has received bids for nearly 50.73 crore shares.

The reserved portion of QIBs got subscribed 144.43 times, and non-institutional investors 107.73 times & retail 21.7 times.

The issue consisted of a fresh issue of 41,39,000 equity shares and an offer for sale of 12,80,706 equity shares by Dr Shridhar Bhalchandra Shukla and Vijayalaxmi Shridhar Shukla and Ashutosh Vinayak Joshi.

The company will raise around Rs 157.17-168 crore at price band of Rs 290-310 per equity share. Promoters' holding will be reduced to 38.83% from 43.31% post issue.

The company will received only Rs 128.31 crore from the issue while the rest of money will go to selling shareholders.

The objects of the issue are to establish development facilities; capitalise subsidiaries for establishing development facilities and meeting fit outs and interior design costs; procure hardware and fund expenditure for general corporate purposes.

It is an OPD specialty company, offering customers the benefits of offshore delivery. It designs, develops and maintains software systems and solutions, create new applications and enhance the functionality of customers' existing software products.

The book running lead managers to the issue are Enam Securities Private Limited and JP Morgan India Private Limited. Link Intime India Private Limited is the registrar.