Date:11/03/2008 URL: http://www.thehindubusinessline.com/2008/03/11/stories/2008031152111500.htm

Back Persistent Systems defers IPO

Our Bureau

Mumbai, March 10

In the light of poor market sentiments and adverse developments in the financial markets in India and abroad, Persistent Systems Ltd has decided to defer its proposed initial public offering (IPO).

“Persistent Systems Ltd has decided to defer its proposed initial public offering due to the prevailing poor market sentiments and adverse developments in the financial markets in India and abroad,” the company said.

Persistent Systems specialises in outsourced software product development.

The company had recently received observations from market regulator SEBI on the Draft Red Herring Prospectus.

“The company was in the process of approaching the Registrar of Companies for a go ahead for the IPO but decided to pull out due to adverse market conditions,” merchant-banking sources said.

But another IPO of Gammon Infrastructure that opened today received good response and had been overall subscribed 0.64 times by 5 p.m, according to the merchant bankers managing the issue.

Another IPO of Sita Shree Food Products is opening on March 11.

Recent market volatility has resulted in withdrawal of some big IPOs by Wockhardt Hospitals, Emaar MGF among others due to poor response in the primary markets.