Persistent Systems gains after RBI removes foreign buying restriction

Persistent Systems rose 1.51% to Rs 1,450 at 9:21 IST on BSE after the central bank removed restriction on purchase of shares by foreign institutional investors in company.

Meanwhile, the BSE Sensex was down 9.19 points, or 0.03%, to 26,340.14.

On BSE, so far 1,362 shares were traded in the counter, compared with an average volume of 8,706 shares in the past one quarter.

The stock hit a high of Rs 1,499 and a low of Rs 1,447.85 so far during the day. The stock hit a record high of Rs 1,550 on 7 October 2014. The stock hit a 52-week low of Rs 689 on 15 October 2013.

The stock had outperformed the market over the past one month till 13 October 2014, rising 9.79% compared with 2.50% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 20.19% as against Sensex's 5.43% rise.

The mid-cap company has an equity capital of Rs 40 crore. Face value per share is Rs 10.

On Tuesday, 14 October 2014, the Reserve Bank of India (RBI) notified that the foreign shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Persistent Systems have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect.

The RBI further advised that FIIs/RFPIs can now invest upto 49% of the paid up capital of Persistent Systems under the Portfolio Investment Scheme.

The decision to enhance the limit for purchase of its equity shares and convertible debentures by FIIs/RFPIs came after the board passed a special resolution on the issue.

On a consolidated basis, Persistent Systems' net profit rose 2.38% to Rs 68.80 crore on 2.63% decline in net sales to Rs 434.99 crore in Q1 June 2014 over Q4 March 2014.

Persistent Systems is a global company specializing in software product and technology services. Persistent has a global team of more than 7,800 employees worldwide including offices and delivery centers in North America, Europe, and Asia-Pacific.

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