IPO Alert: Persistent Systems IPO Opens Today

Another IPO joins the already long list of IPO’s hitting the Indian Stock Markets.Given the frequency that new IPO’s are making their debut in the market, one might think that the investor appetite is just right for the markets to move upwards.

Surprisingly, this time around even though the IPO market has seen positive action, the same has not be reflected in the secondary markets.The SENSEX and NIFTY have both been trading range bound.

However, let’s take stock of the new IPO offering that opens today for subscription

Persistent Systems IPO

Persistent Systems Ltd, is Pune based company providing outsourced software product development services

Persistent Sys IPO Fast Facts

IPO Price Range: Rs.290-310 per share

No. of Shares: 54,19,706

Capital To Be Raised: Rs 157.17-168 crore

Issue Open Date: March 17

Issue Closing Date: March 19

Objective of Raising Capital via IPO: Expanding its development facilities, procuring hardware and to capitalize the company's subsidiaries

Financials:

A a net profit of 667.6 million rupees on total income of 6 billion rupees for the year ended March 31 2009

Why One Should Subscribe To Persistent Systems IPO?

• Consistent Profitable growth year on year
• The company is completely debt free
• The company has sizable presence in SAAS, Business Analytics and Enterprise Computing verticals.All these are to a certain extent recession proof and a lot of IT spend is expected to be driven around these areas.

If the IPO offering would have been of a pure service play IT company, i would have been circumspect about even covering the IPO issue here.However, Persistent is into product development and has all the right niches covered.Hopefully, the IPO will manage to get decent response from investors both retail and institutional

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