ICRA assigns grade 3 to Acropetal Technologies IPO

ICRA has assigned an grade 3 indicating average fundamentals to the proposed initial public offering of Acropetal Technologies (ATL), according to its reports dated February 11.

ATL is proposing to come out with an initial public offer of Rs 170 crore through 100% book building route. Issue proceeds are proposed to be used for acquisitions, setting up a software development centre in Bangalore, establishment of overseas offices, repayment of loans and working capital requirements of the company.

The report says, "ICRA takes into account the robust revenue growth demonstrated by the company in the past few years, its healthy operating margins and efforts made by the company to strengthen its management by induction of several experienced management personnel during the last one year. The grading also takes into account the favourable growth prospects of the Healthcare and Energy segments where the company has entered lately."

"The grading is however, constrained by the risks associated with an acquisition based growth, and the limited track record of the company in the healthcare and energy segments. The grading also takes into consideration the company