Persistent Systems IPO

Mumbai, March 15, 2010: Persistent Systems Limited (the “Company”) is tapping the capital market on March 17, 2010 (“Issue Opening Date”), with an Initial Public Offering (“IPO”) of 5,419,706 equity shares
of Rs. 10 each (“Equity Shares”) for cash at a price (including a share premium) to be decided through a 100% book-building process (the “Issue”). The Bid/ Issue will close on March 19, 2010 (“Issue Closing
Date”).

The Price Band has been fixed between Rs. 290 and Rs. 310 per Equity Share. The Issue consists of a Fresh Issue of 4,139,000 equity shares and an Offer for Sale of 1,280,706 equity shares by Dr. Shridhar Bhalchandra Shukla and Vijayalaxmi Shridhar Shukla (holding shares jointly) and Ashutosh Vinayak Joshi (collectively known as “the Selling Shareholders”). The Issue comprises a Net Issue to the public of 4,877,730 shares of Rs. 10 each (the “Net Issue”) and a reservation of up to 541,976 equity shares of Rs. 10 each for eligible employees (the “Employee Reservation Portion”). At least 60% of the Net Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), (“QIB Portion”). It is provided that the Company may allocate up to 30% of the QIB Portion, to Anchor Investors, on a discretionary basis (“Anchor Investor Portion”). Further, 5% of the QIB Portion less Anchor Investor Portion shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. Further, not less than 10% of the Net Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.

Disclaimer:
Persistent Systems Limited is proposing, subject to market conditions and other considerations, an initial public offering of its Equity Shares and has filed a Red Herring Prospectus (“RHP”) with the Registrar of Companies, Maharashtra, Pune. The RHP is available on the website of the Securities & Exchange Board of India (“SEBI”) at #-Link-Snipped-# and on the websites of the BRLMs at ENAM Holdings Pvt. Ltd. and #-Link-Snipped-#. This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares.

The Equity Shares have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the U.S. Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) in the United States to “qualified institutional buyers”, as defined in Rule 144A under the U.S. Securities Act, in transactions exempt from the registration requirements of the U.S. Securities Act, and (ii) outside the United States to certain persons in offshore transactions in compliance with Regulation S under the U.S. Securities Act. The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.

CRISIL has assigned IPO Grade '4/5' to the initial public offer of Persistent Systems Ltd, which indicates that the fundamentals of the issue are above average, in relation to other listed equities in India.

Intel and HP invested $1 million in Persistent Systems way back in April 2000, through Intel 64 Fund – a $250 million venture fund created in 1999 by Intel along with HP and few others. Sometime later, when the fund was liquidated, the PSL shares held by the fund were divided among the investors. HP did not invest further in PSL but Intel, through Intel Mauritius, again bought shares in PSL in November 2005.



The other two investors – Norwest Venture Partners and Gabriel Venture Partners--invested in PSL in November 2005 by way of cumulative optionally convertible preference shares or CCPS. Norwest paid Rs. 63.1 crore while Gabriel paid Rs 22.7 crore for their share. The CCPS were duly converted into equity shares in September 2007.



Intel Capital and Hewlett Packard Company have invested Rs 10.3 crore and Rs 0.8 crore respectively in the company.