Published on Mon, Mar 15, 2010 at 22:58 | Source : CNBC-TV18
Updated at Wed, Mar 17, 2010 at 18:20
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Persistent Systems eyes Rs 167cr from IPO
Get ready for the second IT listing of the year. Midcap IT firm Persistent Systems is all set to hit the street with an initial public offering, on March 17, reports CNBC-TV18's Kritika Saxena.
Get ready for the second IT listing of the year. Midcap IT firm Persistent Systems is all set to hit the street with an initial public offering, on March 17, reports CNBC-TV18's Kritika Saxena.
A turnover of Rs 435 crore, and over 200 clients, and Persistent Systems wants more. To fund expansion, the mid-cap IT company is all set to tap the capital markets.
Its IPO will open on March 17. The company plans to sell about 54 lakh equity shares, each with a face value of Rs 10. The issue will comprise a fresh issue of about 41 lakh shares, and about 12 lakhs of existing shares. The price of the issue will be decided through a book-building process, within a price band of Rs 290 and Rs 310 per share.
Anand Deshpande, MD, Persistent Systems, says, "We expect to raise about Rs 167 crore from the IPO proceeds. The amount raised will be used for expansion plans across this year."
The company gets 90% of its revenues from the US, while the remaining 10% comes from Europe and Asia Pacific regions. It now plans to increase its footprint in not just these markets, but also in India, especially in Tier I and Tier II cities.
There is good news for employees as well. The company will give out wage hikes and look at hiring a significant number once it finishes raising its estimated amount through the IPO proceeds.
