Acropetal Tech debuts with 8% premium after sterling start

Bangalore based IT service provider Acropetal Technologies' shares witnessed profit booking after a sharp jump in initial first hour of trade. A share settled at Rs 96.80, with gain of nearly 8% on the National Stock Exchange as against issue price of Rs 90 on first day.

The stock touched an intraday high of Rs 140 and low of Rs 87.40, after opening at Rs 92 a share. 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 said in FY11, the company clocked Rs 28 crore profit 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. On the BSE, a share settled at Rs 98.45, after seeing a high of Rs 150 and low of Rs 89. Traded volume on both exchanges was more than 10 crore shares, which was five times to issue size. The company raised Rs 170 crore through the issue, which would be used for proposed acquisitions with the cost of 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.