Persistent Systems Limited a software product development services company, announced that they have filed the Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI) on December 30, 2009. The proposed public issue of around 5.42 million equity shares consists of a fresh issue of around 4.14 million equity shares and an offer for sale of around 1.28 million equity shares.
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 541,976 equity shares of Rs. 10 each for eligible employees. The Issue would constitute 13.55% of the fully diluted post issue paid-up capital of the Company. The net issue will constitute 12.19% of the fully diluted post issue paid-up capital of the Company.
?With significant growth in the recent years and with the stabilizing of the economy, we feel this is the right time for us to re-enter the capital market?, said Dr. Anand Deshpande, Chairman and Managing Director, Persistent Systems Ltd.
He further added, that the issue proceeds are proposed to be used for expanding development facilities at Pune and Nagpur, investing in hardware and software infrastructure and setting up development facilities in SEZ unit through its wholly owned subsidiary apart from general corporate purpose.
