Bangalore based IT service provider Acropetal Technologies' Rs 170 crore initial public offering (IPO) has opened for subscription today. The company has fixed price band at Rs 88-90 a share and will close on February 24.
Post-IPO, the promoter will dilute 49% stake as its holding will drop to 44%. The company intends to use issue proceeds 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.
Saffron Capital Advisors Private Limited is registrar to the issue.
Acropetal offers IT/ITES solutions and a broad spectrum of engineering design services to reduce product design cycle time and costs.
However, some risks are seen, as thecompany is yet to identify acquisition targets.Its significant revenues come from exports while top five customers contribute 55% of income.The company's pre-issue consolidated debt is at Rs 131.96 crore.
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