The Hindu Business Line : Accel Frontline IPO opens on Sept 28

SEEKING FUNDS: Mr N.R. Panicker (right), Chairman & CEO, Accel Frontline, with Mr Steve Ting, Chairman & CEO, Frontline Technologies Corporation Ltd, at a press conference to announce the IPO in Mumbai on Friday. - Paul Noronha

Mumbai , Sept. 22

Accel Frontline Ltd, the information technology service provider in consulting, infrastructure, applications, outsourcing and support segments, will be making a debut on the stock market with an initial public offering of 56.36 lakh equity shares of Rs 10 each through a 100 per cent book building process.

The issue, which opens on September 28 and closes on October 5, constitutes 25.04 per cent of the diluted post-issue paid-up capital of the company. The price band has been fixed between Rs 75 and Rs 90 per share.

SBI Capital Markets Ltd is the book running lead manager (BRLM), Bajaj Capital Ltd is the co-BRLM and Intime Spectrum Registry Ltd is the registrar.

The issue comprises 51.75 lakh equity shares by Accel Frontline Ltd and an offer for sale of 4.60 lakh equity shares by its partner Intel Pacific, INC. Fifty per cent of the offer to the public will be allocated to qualified institutional buyers (QIBs), out of which 5 per cent will be available for allocation to mutual funds registered with SEBI and the remaining QIB portion will be available for allocation to the QIB bidders, including mutual funds.

Fifteen per cent of the offer shall be available for allocation on a proportionate basis to non-institutional bidders and 35 per cent shall be available for allocation on a proportionate basis to retail individual bidders.

"We propose to invest the proceeds of the issue for global expansion plans, improve ESS and BPO infrastructure and acquisition of Software and BPO companies," said Mr N.R. Panicker, Chairman and Managing Director.

The company is in strategic alliance with the Singapore-based Frontline Technologies Corporation Ltd, and entered into joint venture, following which the company's name was changed to Accel ICIM Frontline Ltd.

The company's net profit has gone up to Rs 9.71crore in 2005-06 from Rs 4.21 crore in the previous year.

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