Persistent Systems Launches $450M QIP, Floor Price Set at ₹5,550 per Share

Persistent Systems, a leading IT services company, has initiated a qualified institutional placement (QIP) aimed at raising up to $450 million, which translates to approximately Rs 4,265 crore. The company disclosed this development through an official filing with stock exchanges on October 21, 2026.

A special committee formed by Persistent Systems' board of directors has given the green light to the QIP, including approval of the floor price for the shares and the preliminary placement document. The floor price has been established at Rs 5,550 per equity share, a figure arrived at using the Securities and Exchange Board of India (SEBI) pricing formula.

The company also mentioned that it may extend a discount of up to 5 percent on the floor price. This provision aligns with prior shareholder approval granted via a special resolution passed on October 5, 2026. Such a discount is customary in QIP issuances to attract institutional investors and enhance subscription levels.

The total number of equity shares offered will be calculated to aggregate up to the $450 million target, based on the Reserve Bank of India (RBI) and Fixed Income Money Market and Derivatives Association of India (FBIL) reference rate. The rate used for the calculation was Rs 94.7691 per US dollar as of October 19, 2026, resulting in an issue size of Rs 42,646.10 million.

This move follows a growing trend among IT firms seeking to strengthen their balance sheets and fund expansion plans through the capital markets. Qualified institutional placements provide a streamlined route for listed companies to raise capital from institutional investors without the extended regulatory process of a public offering.

The final pricing of the shares to be issued will be determined in coordination with the book running lead managers assigned to the transaction. Persistent Systems has appointed JP Morgan India, IIFL Capital Services, and HSBC Securities and Capital Market (India) to oversee the pricing and placement process. These financial institutions bring considerable expertise in managing large-scale equity placements in India.

Persistent Systems has been steadily growing in the IT services sector, offering software product development and technology consulting services. The fresh capital raised through this QIP is expected to support the company's strategic initiatives, including technology investments, acquisitions, and scaling of global operations.

In recent years, the Indian IT industry has witnessed increased activity in capital raising, reflecting confidence in long-term growth prospects despite short-term market fluctuations. Companies like Persistent Systems leverage such funding to maintain competitive advantage and invest in innovation amid evolving technology demands.

By opting for a QIP, Persistent Systems aims to access a broad base of institutional investors efficiently, providing them with an opportunity to participate in the company's growth story at a predetermined floor price. This approach also allows the company to avoid dilutive impacts on existing shareholders while securing necessary funds.

The announcement on October 21, 2026, marks a significant step in Persistent Systems' financial strategy ahead of the finalization of issue pricing. Market participants will be watching closely as the company moves forward with the placement, which could influence its stock performance and investor sentiment in the near term.