Accel Frontline plans expansion, to enter capital mkt

Chennai, Sep 23: City based Accel Frontline, an Information Technology services provider, has drawn out regional and global expansion plans, acquisition and investments in strategic business, involving a total investment of Rs 50 crore.

Addressing a press conference here in connection with the company's entry into the capital market, Managing Director K C Panicker said the company proposed to raise about Rs 50 crore through IPO and utilise the proceeds for the expansions.

As part of Global expansion programme, the company was targetting to acquire two firms, involving an investment of Rs 25 crore. Talks were on with a Chennai and Mumbai based companies and an overseas company for the acquisition, he said.

Mr Panicker said the company proposed to spend about Rs five crore on global market development and another Rs nine crore on infrastructure expansions.

A sum of Rs 20 crore would be set apart for the working capital requirement. The infrastructure expansions included creation of additional 500 seats in the software and BPO sectors, he said.

He said the deficit of about Rs 10 crore would be met by internal acruals and financial assistance from the banks. The State Bank of India had already offered a loan of Rs ten crore.

The company proposed to enter the capital market on September 28 with an IPO Of 5,635,950 equity shares of Rs ten each through 100 per cent book building process in the price band of Rs 75 and Rs 90.

The issue would close on October five, he added.

UNI