Bear of the day: Stock that lost 41% market cap in 3 days

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Bear of the day: Stock that lost 41% market cap in 3 days

Bangalore based IT service provider Acropetal Technologies plunged 19.97% or Rs 19.10 to end at Rs 76.55 on the BSE. It touched an intraday high of Rs 99.55 and an intraday low of Rs 76.55.

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Acropetal Tech BSE | NSE 30/05/12 Are Mutual Funds betting on Acropetal Tech?

Bangalore based IT service provider Acropetal Technologies plunged 19.97% or Rs 19.10 to end at Rs 76.55 on the BSE. It touched an intraday high of Rs 99.55 and an intraday low of Rs 76.55. There were pending sell orders of 146,264 shares, with no buyers available. The total traded volumes were of 10,087,367 shares. The share lost 41.39% on market cap in 3 days.

Acropetal offers IT/ITES solutions and a broad spectrum of engineering design services to reduce product design cycle time and costs.

D Ravi Kumar, Chairman & Managing Director told CNBC-TV18 at the time of the company's IPO that in FY11 the company has clocked Rs 28 crore profits on a consolidated basis. He also added that they planned on maintaining their CAGR of 37% and that new acquisition would add to the company's topline.

The company raised Rs 170 crore through an IPO as it debuted on the stock exchange on March 10, which would be used for proposed acquisitions earmarked for  Rs 55 crore, setting up of software development centre and corporate office with Rs 26.2 crore, expansion and establishment of overseas offices with Rs 19.45 crore, repayment of term loans of Rs 25 crore and long term working capital requirements of Rs 25 crore.

Geopolitical concerns have hit the stock hard because of the ongoing crisis in the Middle East and with the region contributing 35% to the company's overall revenues, the market has shown no mercy to the stock in recent weeks.

The compay has niche products in the healthcare, energy and environment space with a strong and unique global delivery model, addressing its US and Middle East clients.