Accel Frontline Limited IPO (Accel Frontline IPO) Detail

Any idea when will this share gets listed on NSE? An what is the estimated price it will get list at first?

please tell me the details of refund ,i applied through ICICI direct. when i will get refund

Accel Frontline Ltd IPO has been fixed at Rs.75/-

Accel IPO looks impressive and may fetch high returns. I feel it is a great investment.

Profit is almost double last year and past records of this company are good.

This is only IPO available today who has good potential. I applied at 90…lets hope I get something 

Capital Market Analysis:

Strengths :
1. Accel Frontline is positioning itself as a total IT service provider and is exploring the international markets from its experience in the domestic market. The strategic tie-up with Frontline Technologies Corporation will give it the expected experience for international markets.

2. Accel Frontline has a pan-India presence with 92 premises (and support centres) in 86 locations.

Weaknesses :
1. For the BPO division, Accel Frontline is dependent on two multinational customers and about 59% of the BPO revenue comes from these select clients.

2. The dependence on government and public sector units is substantial in the current business turnover. The turnover shows an uneven trend among quarters.

3. About 55% of the revenue accrues from IT Infrastructure Solutions, which is a low margin business (essentially involving trading in hardware).

4. The track record is not encouraging, with volatile profit and declining sales till FY 2005. It was only in FY 2006 that sales and profit jumped. Cash flow from operating activities has been negative in three out of the last five years and cash flow after considering investment in fixed assets has been negative in all the five years.

Some more detail about this IPO (Analyst - Ruchir Desai):

1. The current business offerings of AFL include IT Infrastructure Solutions, IT Infrastructure Management Services, Enterprise Software Solutions and BPO Services.

2. The JV with Frontline Tech, enabled it to align its service offerings in line with those of Frontline and the same has gone a long way in stabilising the business model of AFL.

3. AFL plans to geographically diversify its revenue stream as currently >90% of the same is generated domestically. Towards this, it aims to enter into partnerships or set up branches in Middle East, Far East and North America.

4. It is also endeavouring to increase its scale of operations by exploring inorganic means. It is currently scouting for possible acquisitions and is in talks with a Mumbai based outbound voice based BPO and a Chennai based banking software company.

5. This would enable it to achieve its stated objective of strengthening its BPO and product offerings and also achieve scale in these segments.

6. The strong relationship with Frontline Tech has not only stabilised AFL’s business model, but also given it the much needed growth impetus. At the upper end of its price band, it is quoting at a P/E and EV/EBIDTA of 20.9x and 11.7x respectively, discounting its FY06 earnings. Though the issue does not appear cheap, the growth prospects and acquisition plans of the company coupled with the active backing of Frontline, should facilitate it to emerge as a integrated IT solutions player. Hence, we recommend a ‘SUBSCRIBE’ .