Date:14/01/2006 URL: http://www.thehindubusinessline.com/2006/01/14/stories/2006011402070400.htm

Back Accel Frontline plans Rs 100-crore IPO

Raja Simhan T.E.

Chennai , Jan 13

ACCEL Frontline Ltd, a joint venture between Chennai-based Accel Ltd and the $200 million Singapore-based Frontline Technologies Corporation, plans to raise Rs 100 crore through an IPO (initial public offering), according to Mr N.R. Panicker, Chairman and CEO.

The board would meet next week to seek concurrence for the IPO, which wouldlikely happen in April or May, he told Business Line.

The company plans to invest Rs 50 crore in infrastructure expansion and a possible acquisition — it is in talks with a company in the US. The balance would go towards working capital requirement, he said.

In Accel Frontline, the Singapore-based company holds 42 per cent stake, Accel and its employees 43 per cent, and the rest is shared between ICICI Ventures and Intel Asia Pacific (Intel's investment arm), he said.

According to Mr Panicker, the company's turnover for the fiscal ending March 2006 is likely to be Rs 181 crore (Rs 138 crore last fiscal). After some years of "stagnated" performance, the company is now on the right track. The stock market is bullish, and the time is right for an IPO. Five years ago, the company considered an IPO, but decided otherwise due to a downturn in the IT industry following the dotcom bubble burst, he said.

In 2004 the company forged an alliance with Frontline and made Accel ICIM a joint venture between Accel Ltd and Frontline, and changed the name to Accel ICIM Frontline Ltd. Frontline is an information technology IT services company listed on the Singapore Exchange Main Board, and has operations in five countries spread across the Far East and China, he said.