The initial public offer (IPO) of IT firm Persistent Systems (India) was oversubscribed by a staggering 91.99 times by 16:00 IST on the closing day today, 19 March 2010. The IPO got bids for 49.85 crore shares compared with 54.19 lakh shares on offer.
The company had set Rs 290 to Rs 310 a share price band for its 54 lakh shares initial public offer (IPO).
The offer comprised of a fresh issue of 41 lakh shares, with the rest sold by some existing individual investors. The company would raise Rs 167.40 crore at the upper end of the price band. The total issue would make up 13.55% of the post-issue capital.
Persistent Systems plans to use the funds raised from the IPO for establishment of development facilities in Pune and Nagpur and to procure hardware.
The company's IPO has been assigned an IPO Grade 4/5 by a ratings firm indicating above average fundamentals.
Pune-based Persistent Systems caters to offshoring outsourced product development (OPD) market. It provides customised services to global software product firms and start-ups.