Acme Resources

Acme Tele Power of Acme Group and provider of innovative energy conservation solutions and products to companies operating in the global telecommunications industry, has filed its DRHP with Sebi on 6/12/07 to enter the capital market with a Public Offer of 17,283,580 equity shares of Rs 2 each, through the book building route.

Prior to the proposed public issue, the company has placed through the private equity placement route, a total of 2,856,502 shares of Rs 2 each, representing 1.66% of the expanded capital base of the Company, at a price of Rs 688 per share, aggregating to Rs.196.5 crore approx (US $50 million). Out of these, 2,283,066 shares have been placed with DB International (Asia) Limited, 428,088 shares with Earthstone Holdings Private Limited and145,348 shares with Kotak Mahindra Capital Company Limited.

The Book Running Lead Managers to the proposed issue are Kotak Mahindra Capital, Citigroup Global Markets and Deutsche Equities India.

The company proposes to list its shares on BSE and NSE.

Acme's net turnover increased from Rs.34.59 crore  in fiscal 2004, to Rs. 64.75 crore on consolidated basis, in fiscal 2007, registering a CAGR of 165.5%. The EBIDTA margins for the corresponding periods were 29.4% and 37.6% respectively and net profits were Rs. 9.40 crore and Rs.22.83 crore on consolidated basis, for fiscal 2004 and fiscal 2007 respectively, registering a CAGR of 189.6%.

Acme was established in the year 2003. Originally, the company operated as a provider of passive infrastructure products and installation and maintenance services to wireless telecommunications service providers. In 2007, the company began to expand the scope of its business to include the provision of energy management services and turnkey solutions to telecommunication operators. 

The company specializes in providing comprehensive, energy efficient and environmentally friendly passive infrastructure solutions to telecommunication operators. The company operates two manufacturing facilities in India located at Pantnagar in Uttaranchal and Parwanoo in Himachal Pradesh.

In October, 2007, the company acquired 100% shares of Reime Network Implementation Services for $11 million.  Reime is based in Norway and works with telecommunication companies and technology vendors, focusing on emerging markets.  As of September 30, 2007, Acme had five patents registered in its name and had made applications for three further patents, one of which is pending final notification of grant. 

The company intends to use the proceeds of the issue to invest in its research and development activities, leverage the R&D initiatives and set-up of its holding company, MKU Holdings Limited, and to seek appropriate protection for intellectual property assets.