Persistent Systems raises ₹4,264 crore through its QIP - These institutions received shares

Technology services provider Persistent Systems Ltd. announced the closure of its Qualified Institutional Placement (QIP) exercise on Monday, October 26, in an exchange filing. The company has raised a total of ₹4,264 crore through this exercise, by issuing shares to eligible shareholders.

According to the filing, the board of Persistent Systems approved the allotment of 76,83,981 equity shares to eligible buyers at an issue price of ₹5,500 per share. That is a discount of 6% in comparison to the stock's closing price on Monday, and a 3.66% discount to the floor price of the QIP.

With the issuance of the QIP shares, the paid-up equity share capital of the company stands to increase from ₹79.07 crore, comprising of 15.81 crore equity shares carrying a face value of ₹5 each, to ₹82.91 crore, comprising of 16.58 crore equity shares.

Most of the institutions who have been issued 5% or more shares reserved for the QIP exercise include India's Domestic Mutual Funds. Goverenment Pension Fund Global is the only Foreign Portfolio Investor (FPI), who has been issued shares as part of the QIP.

Institutions Who Received Persistent Systems QIP Shares

Institution	% Of QIP Shares
SBI MF (Various Schemes)	9.38
ICICI Prudential MF (Various Schemes)	7.62
Kotak MF (Various Schemes)	7.62
Aditya Birla Sun Life MF (Various Schemes)	7.62
Government Pension Fund Global	5.86

Persistent Systems had launched the QIP on October 21 to raise funds to finance its announced acquisition of Nagarro SE. The total outlay for this acquisition is $1.45 billion, with the initial bridge now refinanced through a combination of rupee debt sales and this QIP.

Back in June, when the company had announced the acquisition, the company had reiterated that they do not need a QIP to fund this deal.

"Let me reinforce we don't want a QIP. We are not looking at a QIP in the next several years unless there is a need for us to do it for other reasons. So for this acquisition we don't need a QIP," Sandeep Kalra of Persistent Systems had told CNBC-TV18 on June 29.

Persistent Systems recently reported its September quarter results, where even as its constant currency revenue growth was higher than expectations, its EBIT margins fell 100 basis points to 15%, contrary to expectations of a 50 basis points fall. The company's aspirational margin target is 16% to 17%.

The one-off deal expenses led to a 27% sequential drop in the company's net profit during the quarter.

Shares of Persistent Systems ended 2.1% higher on Monday at ₹5,850. The stock is down 7% so far this year.