Bangalore-based mid-tier IT services and products firm Acropetal Technologies plans to enter the capital markets with an initial public offer (IPO) in August. The company expects to raise Rs 170 crore. The proceeds will go towards acquisitions, new software development facility, overseas expansion and debt repayment. The number of equity shares will be decided closer to the issue date.
The firm, which reported revenues of Rs 153 crore in FY10 and a net profit margin of 23%, will file the red herring prospectus with market regulator Sebi this month.
Saffron Global Markets is the lead manager of the issue. The IPO will be listed on Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Founder chairman and MD D Ravi Kumar told FE that Rs 55 crore from the IPO will go towards fuelling inorganic growth. The firm is looking at acquistions to beef up its nascent healthcare vertical as well as the enterprise solutions space.
?About Rs 26 crore of the issue will go towards a new software development facility, Rs 19 crore on overseas expansion and the rest in part repayment of loans,? he said.