Persistent Systems Ltd. moves to reshape its capital structure

Using 157,750,000 as the pre-allotment share count, the post-issue share count becomes 165,433,981:

• New shares: 7,683,981
• Post-issue shares: 157,750,000 + 7,683,981 = 165,433,981
• Dilution for existing shareholders: 7,683,981 ÷ 165,433,981 = 4.644742%, or 4.64%
• The share count itself increases by 4.870987% versus the pre-issue base. The relevant loss of existing shareholders’ ownership is the lower 4.644742% post-issue dilution.

Pro-forma EPS impact

Assuming the issuance does not immediately increase net profit, pro-forma EPS will be:

Pro-forma EPS = TTM net profit ÷ 165,433,981 shares

If TTM net profit is expressed in Rs Crores:

Pro-forma EPS = TTM net profit in Rs Crores × 10,000,000 ÷ 165,433,981

Relative to the pre-issue EPS:

Pro-forma EPS = pre-issue EPS × 157,750,000 ÷ 165,433,981

Therefore, the issuance mechanically reduces EPS by 4.644742%, leaving pro-forma EPS at 95.355258% of the pre-issue EPS, unless the funds raised generate sufficient incremental profit.

The exact TTM net profit could not be confirmed from the figures available here. The reported figures include FY26 PAT of Rs 1,865.1 Crores ^[1] and Q2 FY27 PAT of Rs 351.51 Crores ^[2], but these do not establish the required TTM PAT. The calculation also assumes that 157,750,000 shares is the pre-allotment count; if it already includes the new shares, the dilution would be overstated.

The specific allocation of the Rs 4,264.6 crore QIP proceeds among:

• potential M&A activities,
• working capital requirements, and
• general corporate purposes

could not be confirmed. The proceeds breakdown was not separately disclosed in the material searched for FY26–FY27. Accordingly, the percentage and rupee allocation for each category is N/D — not disclosed; it should not be inferred from the total proceeds.

Persistent’s Rs 5,550 issue price was at a 3.66% discount to the final QIP floor price of Rs 5,761, but the discount or premium to the two-week VWAP cannot be confirmed from the available trading data. The allotment filing records a Rs 211 per-share discount to the floor price on 26 October 2026. ^[3]

The available market snippets show closing prices of Rs 5,858.50 on 21 October, Rs 5,740.50 on 22 October and Rs 5,727.50 on 23 October. On a simple close-to-close reference, Rs 5,550 was approximately 3.10%-5.27% below those observed closes, but this is not a VWAP calculation because the full two-week volume series is not available. ^[4]

Peer comparison

An older Coforge placement in May 2024 provides only limited context: its reported floor price of Rs 4,531.40 was approximately 5.4% below the preceding Tuesday’s closing price, with an indicative issue range of Rs 4,531-Rs 4,600; the final allotment price was not established in the cited report. ^[6] That is not directly comparable with Persistent’s completed 2026 QIP or with a VWAP-based discount.

Implication: Persistent’s 3.66% discount is a discount to the regulatory floor, not evidence of a 3.66% discount to market VWAP. Based on the limited closing-price observations, the issue was below the prevailing market prices, but the precise two-week VWAP spread—and a robust peer median—cannot be established.