The Hindu Business Line : Acme Tele Power IPO gets 5/5

Mumbai, Jan. 23 Crisil has assigned a Crisil IPO Grade ‘5/5’ to the proposed initial public offering of Acme Tele Power Ltd (ATPL). This is the highest grading given by Crisil.

This grade indicates that the fundamentals of the issue are strong compared with other listed companies in India. ATPL, incorporated in January 2003, is promoted by Mr Manoj Upadhyay. The proposed IPO will offer 17.3 million shares for sale by the promoters.

Manufacturing facilities

Subsequent to the IPO, the promoters’ stake in the company will come down to 84.6 per cent from 94.7 per cent. ATPL manufactures shelters, power regulation equipment, and air conditioners, which are used at mobile operators’ cell sites.

It has manufacturing facilities at Pantnagar in Uttaranchal and Parawanoo in Himachal Pradesh. For the year ended March 31, 2007, ATPL reported a net profit of Rs 230 crore on a turnover of Rs 643 crore, compared with a net profit of Rs 116 crore and revenues of Rs 385 crore in the previous year.

A Crisil report states that they expect ATPL to report strong future growth while maintaining its track record of exceptional operating and financial performance.

Rapid Expansion

This reflects the company’s solid market position, and its customers’ focus on rapid expansion. ATPL’s unique products are used by mobile operators to manage power consumption at cell sites where the supply and quality of power is unreliable.

With a market share of around 25 per cent across all cell site installations, ATPL enjoys leadership position in this segment. The company is thus well placed to benefit from large investments planned by mobile operators in India, who propose to add almost half a million cell sites over the next five years, stated the report.

“ATPL has a good market position in telecom sector that has good growth prospects,” said Mr Ajay Dwivedi, Rsearch Director, Crisil Ltd.