Persistent Systems announced on Wednesday that its special committee of the board had approved the opening of a qualified institutional placement (QIP), the floor price and the preliminary placement document. The IT services firm will seek to raise up to $450 million, roughly ₹4,265 crore, by issuing equity shares. The floor price has been set at ₹5,550 per share under SEBI’s pricing formula. Shares are expected to trade on Thursday, 22 October, as the company prepares to launch the placement.

The floor price of ₹5,550 per equity share was determined using SEBI’s ICDR pricing formula. Persistent Systems may offer a discount of up to 5 percent on this floor price, a provision approved by the board through a special resolution on 5 October. The discount allows the company to set the final issue price slightly below the floor price if market conditions warrant. The special committee also confirmed that the floor price remains the minimum price at which shares can be offered to qualified institutional buyers.

The issue size will comprise a number of equity shares aggregating up to $450 million, equivalent to ₹42,646.10 million, as computed based on the RBI/FBIL reference rate of ₹94.7691 per US dollar on 19 October 2026. Persistent Systems stated this figure in a filing to the stock exchanges. The conversion of the dollar amount to rupees uses the prevailing exchange rate on the specified date, ensuring compliance with regulatory valuation norms. The total capital raised will be capped at the stated dollar equivalent.

The final issue price will be determined by Persistent Systems in consultation with the book‑running lead managers: JP Morgan India, IIFL Capital Services and HSBC Securities and Capital Market (India). These managers will assess investor demand and bids received during the placement to set a price that may be at or above the floor price. The company retains the authority to adjust the issue price within regulatory limits, ensuring that the placement reflects market conditions and investor appetite.

A qualified institutional placement (QIP) allows a listed company to raise capital by issuing shares or other eligible securities directly to large institutional investors, rather than through a public issue. The route is regulated by the Securities and Exchange Board of India (SEBI) and is used for purposes such as business expansion, debt repayment, acquisitions or other corporate needs. QIP transactions are limited to Qualified Institutional Buyers (QIBs) including mutual funds, insurance companies, scheduled commercial banks, eligible foreign portfolio investors, public financial institutions and certain alternative investment funds.

Only investors classified as Qualified Institutional Buyers (QIBs) can subscribe to a QIP. Eligible QIBs comprise mutual funds, insurance companies, scheduled commercial banks, eligible foreign portfolio investors, public financial institutions and certain alternative investment funds. Retail investors and individual high‑net‑worth investors cannot directly subscribe in their individual capacity. Promoters and persons related to them are generally barred from receiving allotments under a QIP, subject to regulatory provisions. The company’s filing also noted that the QIP is intended for institutional participation only, aligning with SEBI guidelines.