Persistent Systems revives IPO plan

Reviving its plans to hit the capital market, software product development services firm Persistent Systems, has filed a Draft Red Herring Prospectus (DRHP) with market regulator the Securities and Exchange Board of India (Sebi) to offload around 5.42 million equity shares.

The Pune-based IT firm had planned a listing in 2008, but a reversal of fortunes on the stock market led by the global economic meltdown made the company defer its initial public offer (IPO).

"With significant growth in recent years and stabilising economy, we feel this is the right time for us to re-enter the capital market," Persistent Systems Chairman and Managing Director Anand Deshpande said in a statement.

The issue comprises a net issue to the public of around 4.88 million equity shares of Rs 10 each and a reservation of up to 5.4 lakh equity shares of Rs 10 each for eligible employees.

The issue would constitute 13.55 per cent of the fully diluted post issue paid-up capital of the company.

Deshpande said, the issue proceeds are proposed to be utilised to expand development facilities in Pune and Nagpur and investments in hardware and software infrastructure.

The company also proposes to use the funds to set up development facilities in an SEZ unit through its wholly-owned subsidiary apart from allocation to the general corporate purpose.

Persistent Systems specializes in software product development services and currently conducts its business in Pune, Nagpur, Hyderabad, Goa and overseas in Canada, Japan, Germany, the Netherlands and UK. It has business presence through its subsidiaries in the US and Singapore.