ACROPETAL TECHNOLOGIES - IPO price fixed at Rs90

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ACROPETAL TECHNOLOGIES - IPO price fixed at Rs90 (upper band)

Price band was Rs 88 to 90

Acropetal Technologies, IPO, Final Subscription -1.28x

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ACROPETAL TECHNOLOGIES LIMITED

Total Issue Size	19318181
Total Bids Received	24816240
Total Bids Received at Cut-off Price	7482120
No. of times issue is subscribed	1.28

Sr.No.	Category	No.of shares offered/reserved	No. of shares bid for	No. of times of total meant for the category
1	Qualified Institutional Buyers (QIBs)	9659091	10863000	1.12
1(a)	Foreign Institutional Investors (FIIs)		10658520
1(b)	Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies)		0
1(c)	Mutual Funds		0
1(d)	Others		204480
2	Non Institutional Investors	2897727	5787540	2.00
2(a)	Corporates		4219920
2(b)	Individuals (Other than RIIs)		1171980
2(c)	Others		395640
3	Retail Individual Investors (RIIs)	6761363	8165700	1.21
3(a)	Cut Off		7482120
3(b)	Price Bids		683580

Updated as on 24 February 2011 at 1730 hrs

Acropetal Technologies - IPO Note (Keynote Capitals)

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note of the IPO of Acropetal Technologies Ltd.

Issue Highlights

Price Band                                                    :     Rs88-90 per share                                                                            

Minimum Bid Lot Size                                  :     60 Equity Shares

Maximum Bid Lot Size                                  :     2,220 Equity Shares

IPO open during                                           :     February 21 - 24, 2011

Book Running Lead Managers                      :     Saffron Capital Advisors Private Ltd.

To list on                                                      :     NSE & BSE

IPO Grading                                                  :     3 / 5 (ICRA)

PE                                                                 :     4.62x (based on base price)*

                                                                     :     4.72x (based on cap price)*

Market Cap post-listing                                 :     Rs350Cr or $77.4mn (based on the cap price)

Market Cap of Free Float                               :     Rs196Cr or $43.3mn (based on the cap price)

*Based on FY10 EPS

IPO of 18.89mn equity shares of Rs10 each, aggregating to Rs170Cr or $37.6mn (at the cap price)

Acropetal Technologies IPO - to invest or not? Avoid: Bussiness Line

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The macro trends in the IT sector are such that the top tier and relatively larger players have seen a considerable revival in fortunes after the financial crisis.

Mid-tier, and more so the smaller software companies, are yet to see significant revival in volumes or pricing, especially after the debt crisis in Europe. In this light, investors can give the IPO of Acropetal Technologies, a provider of engineering design and IT services, a miss, given the challenges in scalability of its business and relatively higher valuation that the offer demands.

At Rs 90 (upper end of the price band), the offeror asks for around 10 times its annualised (9MFY11) earnings on a fully diluted basis. This valuation is about the same or marginally higher than what companies such as Geometric, KPIT Cummins and Infotech Enterprises (that are 3-10 times larger) trade at.

Acropetal Technologies IPO: All you want to know

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Issue Terms
Issue price / Floor Price (Rs)	88-90
Application per share (Rs)	88.00
Minimum investment amount (Rs)	5,280.00
Minimum bid (no of shares)	60 shares and in multiples of 60 thereafter
Maximum Shares for Retail	2220

Issue Date and Size
Issue opens	21-Feb-11
Issue closes	24-Feb-11
Listing on	BSE, NSE
Issue size (Rs cr)	170

Company Financials (Rs cr)	2009-12-31
No of months	9
Turnover	151.88
Net profit / (loss)	28.41
Borrowings	131.96

Lead Managers & Registrar
Lead Manager(1)	Saffron Capital Advisors Pvt Ltd
E-mail	acropetal.ipo@saffronadvisor.com
Lead Manager(2)	N.A.
E-mail	N.A.
Registrar	Sharex Dynamic (India) Pvt Ltd
E-mail	atl.ipo@sharexindia.com

Company Contact Details
Company's address	#2/10, 3rd Floor, Ajay Plaza, 1st Main, N.S. Palya, Bannerghatta Road, Bangalore
Pincode	560 076
Tel No.	91 80 4155 9501
Fax No.	91 80 2678 9553
Website	http://www.acropetal.com

Description
Offers a broad spectrum of engineering design services to reduce product  design cycle time and costs.

Objects of Issue
To finance the funds required for our potential acquisitions; To set up a software development centre cum corporate office at Hosur Road, Bangalore; Expansion & establishment of overseas offices; Part repayment of term loans; Additional long term working capital requirements