Persistent Systems QIP opens: IT services firm eyes ₹4,265 crore; floor price and other key details

Shares of Persistent Systems are expected to be on investors' radar on Thursday, October 22, as the IT firm has opened a qualified institutional placement (QIP) to raise up to $450 million, or about ₹4,265 crore, and set the floor price at ₹5,550 per share.

The company informed the stock exchanges on Wednesday that its special committee of the board approved opening the issue, the floor price, and the preliminary placement document.

The floor price was set at ₹5,550 per equity share, under SEBI's pricing formula.

Other key details

The company may offer a discount of up to 5% on the floor price, in line with the approval accorded by members through a special resolution on October 5, it said.

"The issue size will comprise such number of equity shares of the company aggregating up to $450 million equivalent to ₹42,646.10 million, computed based on the RBI/FBIL reference rate of ₹94.7691 per US dollar as of October 19, 2026," Persistent said in a filing to stock exchanges.

The special committee of the board also approved "the floor price for the issue, being ₹5,550 per equity share (floor price), based on the pricing formula as prescribed under the SEBI ICDR Regulations", the filing further said.

The final issue price will be decided by the company in consultation with the book running lead managers, JP Morgan India, IIFL Capital Services and HSBC Securities and Capital Market (India).

Key FAQs answered

What is a floor price and issue price in a QIP?

In a QIP, the floor price is the minimum price at which a company can offer its shares to eligible institutional investors. The company cannot set the issue price below the applicable floor price, although it can offer shares at a higher price.

The issue price is the final price at which the company allots shares to investors through the QIP. It is determined after considering investor demand and the bids received during the issue.

For instance, if a company’s QIP floor price is ₹500 per share, it may set the final issue price at ₹500 or higher, say ₹520. The difference between the two prices reflects the premium over the minimum permitted price.

A higher issue price means the company raises more money for each share issued, while a lower price means investors acquire the shares at a lower cost.

What is a QIP in India Inc?

A qualified institutional placement (QIP) is a way for a listed company in India to raise money by issuing shares or certain other eligible securities directly to large institutional investors, rather than offering them to the general public through a public issue.

Companies may use the funds to expand their business, repay debt, finance acquisitions, or meet other corporate requirements. The route is regulated by the Securities and Exchange Board of India (SEBI).

Who can participate in a QIP?

Only investors classified as Qualified Institutional Buyers (QIBs) are eligible to subscribe.

These include mutual funds, insurance companies, scheduled commercial banks, eligible foreign portfolio investors (FPIs), public financial institutions and certain other eligible institutional investors, such as specified alternative investment funds.

Retail investors and individual high-net-worth investors cannot directly subscribe in their individual capacity. The company's promoters and persons related to them are also generally barred from receiving allotments under a QIP, subject to regulatory provisions.