Persistent Systems gains on acquiring Pune based firm

Persistent Systems rose 2.13% to Rs 1,366.70 at 11:37 IST on BSE after the company said that it will invest $100,000 in Pune-based products company, Altizon Systems.

The announcement was made after trading hours on Monday, 15 September 2014.

Meanwhile, the BSE Sensex was down 27.39 points, or 0.10%, to 26,789.17.

On BSE, so far 4,287 shares were traded in the counter, compared with an average volume of 12,091 shares in the past one quarter.

The stock hit a high of Rs 1,400 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,350 so far during the day. The stock hit a 52-week low of Rs 565 on 18 September 2013.

The stock had outperformed the market over the past one month till 15 September 2014, rising 9.68% compared with 2.73% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 26.39% as against Sensex's 6.30% rise.

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

Persistent Systems said it entered into a stock purchase agreement with Altizon Systems, a Pune-based product company focused on the Internet of Things (IoT), to invest $100,000 in the company by subscribing to the equity shares of Altizon in one or more tranches from time to time. Immediately followed after entering into the above agreement, the company has also remitted its first tranche of investment to Altizon, Persistent Systems said in a statement.

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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