Persistent Systems Buyback 2019

Persistent Systems is a technology services company which was incorporated on 16 May 1990 as Persistent Systems Private Limited. It was subsequently converted into a public Limited company on 17 September 2010 with the name Persistent Systems Limited and a new certificate of incorporation was issued on 28 September 2007 from the RoC.

Expertise :

1. Service areas such as Bigdata, Analytics, and BI.

2. Domains areas such as BFSI, Healthcare, Telecom, Media and Retail.

3. Products engineering such as Integration, Data Development, Owned IPs, Certification Labs.

4. IP and accelerators such as Share insights, Connector factory, Haddop, and Spark development.

Buy Back Offer Deal:

Buyback Type: Open market
Buyback Opening Date: Feb 08 2019
Buyback Closing Date: Aug 07 2019
Buyback Offer Amount: ₹ 225 Cr
Date of Board Meeting approving the proposal: Jan 27 2019
Date of Public Announcement: Jan 27 2019
Buyback Offer Size: 3.75%
Buyback Number of Shares: 3000000
FV: 10
Buyback Price: ₹ 750 Per Equity Share

Details of Buyback:

Approved the buyback by the Company of its fully paid-up equity shares having face value of INR 10 (INR Ten only) each ("Equity Shares") at a price not exceeding INR 750 (INR Seven Hundred and Fifty only) per Equity Share ("Maximum Buyback Price") and for an aggregate amount not exceeding INR 2,250 Million ("Maximum Buyback Size"), from the shareholders of the Company excluding promoters, promoter group and persons who are in control of the Company, payable in cash via the "open market" route through the stock exchanges.

Salient financial parameters:

Year Revenue(Cr) Expense(Cr) OPM% PAT(Cr) NPM(%) EPS
2016 2389 2019 34% 277 12% 35
2017 2974 2562 33% 301 10% 38
2018 3152 2723 31.80% 323 10% 40

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Persistent Systems ” announces buyback plan of its shares up to value of Rs 750, it means that the company will be purchasing shares of "Persistent Systems" from the open market at a price not exceeding Rs.750 per share. Scenario 1- If the share price is below Rs. 750 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 750, in that case, the company will put buy order at Rs. 750 only and if someone is ready to sell at Rs.750 or less then only company will get back shares  

Profit from the buyback on the bases of acceptance Ratio:

NA

Recommendation:

Persistent Systems Limited Buyback 2019 rating by InvestorZone team => 2/10 1-5: Fair 5-7: Good 7-10: Excellent [ As it is the Open-Market Buyback, so no arbitrage for the investors. Nobody has anticipated it to be an Open Market Buyback. ]

    Any idea about the share price level after the buy back
    Can it go till 650 level

    Is there any start date and end date where Company perform this Open Market buyback??

    Sorry for the typo
    I was referring cyent

    Is it good to accumulate persistent systems at 560 level