Intel Capital sold the second and last tranche of its holdings in Persistent Systems Ltd effectively exiting the Pune-based software development firm more than a decade after it first invested in it in April 2000.

Around a year ago, the venture capital arm of Intel had sold a part of its shares soon after Persistent listed on the Indian bourses.

On April 13, Intel Capital sold 9,16,746 shares in a bulk deal representing 2.29 per cent stake for Rs 36 crore and a bulk of these was acquired by Reliance Capital (Equity Opportunities Fund) according to market sources.

Awaiting details

Mr Vivek Sadhale, Company Secretary, and Head, Legal and Investor Relations, Persistent Systems, said they had learnt of the deal through the market. “We are waiting for the details,” he said.

In April 2000, Intel had invested $1 million in Persistent Systems through Intel 64 Fund. Part of the investment was under a lock-in period. The venture fund was liquidated subsequently and the shares were transferred to the constituents including Intel Capital and Hewlett-Packard.

In the first quarter of FY 11, Intel Capital sold around half a million shares of Persistent, representing 1.37 per cent stake. “This was the part which was not under the lock-in,” Mr Sadhale said, adding that following the yesterday's sale Intel has exited Persistent, but HP continues to hold a small stake.

Established by Dr Anand Deshpande in 1990, Persistent Systems Ltd provides outsourced software product development services to its clients. Currently, two other venture capital firms have invested in it, with Norwest Venture Partners FVCI Mauritius holding 5,404,581 shares representing 13.5 per cent stake and Gabriel Venture Partners II Mauritius holding 1,943,716 shares translating to 4.8 per cent of the equity stake.

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