Persistent Systems jumps as board to mull hiking FII limit

Persistent Systems rose 1.03% to Rs 1,265 at 14:26 IST on BSE after the company said its board will meet on 2 August 2014, to consider increasing the existing investment limit of the foreign institutional investors in the company.

The company made the announcement during trading hours today, 1 August 2014.

Meanwhile, the BSE Sensex was down 226.60 points, or 0.88%, to 25,668.37.

On BSE, so far 11,000 shares were traded in the counter, compared with an average volume of 20,744 shares in the past one quarter.

The stock hit a high of Rs 1,288.05 and a low of Rs 1,226.30 so far during the day. The stock hit a 52-week high of Rs 1,399.60 on 18 July 2014. The stock hit a 52-week low of Rs 508 on 6 August 2013.

The stock had outperformed the market over the past one month till 31 July 2014, rising 15.36% compared with 1.89% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 24.07% as against Sensex's 15.51% rise.

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

The board of Persistent Systems will consider increasing the existing investment limit of 24% for the foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) in the company under portfolio investment scheme (PIS).

The Reserve Bank of India (RBI) on Thursday, 1 August 2014, advised that the foreign shareholding by FIIs/RFPIs under PIS in Persistent Systems has crossed the limit of 24% of its paid-up capital. Therefore, no further purchases of shares of this company would be allowed through stock exchanges in India on behalf of FIIs/RFPIs.

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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