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Accel Frontline IPO poll: Experts opinion mixed

Published on Fri, Sep 29, 2006 at 19:45 | Source : Moneycontrol.com

Updated at Fri, Sep 29, 2006 at 19:50

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Nifty

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Accel Frontline, an information technology services provider specializing in consulting, infrastructure, applications, outsourcing and support services, is open for subscription with an initial public offering, IPO of 56,35,950 equity shares of Rs 10 each through 100% book building process in the price band of Rs 75 to Rs 90.

The issue closes on October 5, 2006. The issue would constitute 25.04% of the fully diluted post issue paid-up capital of the company.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts opinion were mixed.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Apply	Accel Frontline is a good issue. One can apply for this issue.
SP Tulsian (Investment Advisor)	Don't Apply	Investors should ignore Accel Frontline IPO. It is an average and expensive issue.
*Pioneer Intermediaries	Apply	Investors can subscribe to Accel Frontline IPO.

*(View taken from their reports)

Accel Frontline proposes to invest net proceeds of the issue to fund regional and global expansion plans and acquire and invest in strategic businesses. It also has plans to expand and improve its ESS and BPO infrastructure.

The equity shares will be listed on the NSE and BSE. SBI Capital Markets is the BRLM and Bajaj Capital is the co-BRLM for the issue and Intime Spectrum Registry is the registrar.

The public issue comprises of a fresh issue of 51,75,667 equity shares by Accel Frontline and an offer for sale of 4,60,283 equity shares by Intel Pacific. 50% of the offer to the public shall be allocated on a proportionate basis to qualified institutional buyers, QIB, out of which 5% will be available for allocation to mutual funds registered with Securities and Exchange Board of India, Sebi and the remaining QIB portion shall be available for allocation to the QIB bidders including mutual funds, subject to valid bids being received at or above the issue price.

Further, atleast 15% of the offer to the public shall be available for allocation on a proportionate basis to non-institutional bidders and at least 35% of the offer to the public shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid bids being received at or above the issue price.

The company's total income for the year ended March 31, 2006 touched Rs 1,704.29 million and PAT at Rs 97.11million as against total income of Rs 1,368.18 million and PAT of Rs 42.16 million for the previous year.