Acropetal's Rs 170-cr IPO to hit market on Feb 21

MUMBAI: Bangalore-based IT firm, Acropetal Technologies, plans to raise Rs 170-crore through its IPO scheduled to hit the market on February 21.

The company has fixed the price-band of its IPO at between Rs 88 and Rs 90 per equity share.

"We will use the IPO proceeds to finance acquisitions, set-up a software development centre-cum-corporate office in Bangalore and expand overseas," Acropetal's Chairman and Managing Director, D Ravi Kumar, told reporters here today.

Besides, a part of the proceeds will also be used for part-payment of term loans and meet additional working capital requirements, he said.

The company's key focus areas are healthcare services, energy and environment services.

"We are interested in acquiring companies in these segments and have earmarked Rs 55-crore for the purpose," Ravi Kumar said, adding "we are scouting for companies which will give us synergy."

Around Rs 26-crore will be invested in setting-up the software development centre-cum-corporate office, he said.

"In Phase I, we plan to set up a 500-seater," he said. In FY 10, Acropetal clocked a turnover and PAT of Rs 152-crore and Rs 35-crore, respectively. For the nine-months ended December 2010, its turnover and PAT stood at Rs 148-crore and Rs 28-crore, respectively.

Its issue closes on February 24.