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Subscribe to Persistent IPO: Aditya Birla Money
Aditya Birla Money has come out with a research report on Persistent Systems' IPO. The broking firm has recommended subscribing to the issue with long-term perspective.
Aditya Birla Money has come out with a research report on Persistent Systems' IPO. The broking firm has recommended subscribing to the issue with long-term perspective.
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, "On the upper band of the issue price Rs 310, the company has priced its issue on a PE of 12.34x on its annualized earnings and P/BV of 1.95x on postissue. Since Persistent is a pure OPD player, there are no listed comparisons available but other similar sized players like Sasken and Hexaware trade at a P/E of lower than 10."
"Persistent Systems has quite strong investor base with the likes of Norwest Venture Partners (15%), Gabriel Venture Partners (5%), Intel Capital (4%) and HP (1%), which together hold about 25% in the firm. By considering the factors such as - product profile, higher retention ratio, debt free, relatively high cash and investments position and strong investor base, we recommend subscribe on the issue with long-term perspective," according to Aditya Birla Money.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
