Ace Tours to raise Rs 8 cr from SME IPO

Proceeds from IPO will be utilised for the working capital requirements of the company and for brand building exercise

Surat-based travel operator, Ace Tours Worldwide Ltd is planning to raise Rs 8 crore through initial public offering (IPO).

The company will list its shares on the Bombay Stock Exchange (BSE)'s SME platform.

The proceeds from the IPO will be utilised for the working capital requirements of the company and for brand building exercise.

"We are planning to open new offices in Gujarat and other parts of the country. From the present four offices in the state we will open three more in the state in coming months," said Raju Choksi, managing director, Ace Tours Worldwide Ltd.

The company has preferred to list its shares on the BSE SME platform.

"Ours is the first Indian tour operator company to get listed on exchanges. We find the SME platform more investor-friendly. Also, it is more successful for small companies," he said.

Larger part of company's revenues comes from outbound tourists and corporate clients.

"In recent months the outbound business is slow because of depreciation of rupee. However, we are increasing our focus on inbound tourism, medical tourism and adventure tourism in the country," he said.

The company, which has most of its clients in Gujarat and Maharashtra, operates tours mostly for Asian nations including China, Far East and Dubai besides Europe and Africa.

For the SME IPO, the company has put on offer a 50,00,000 equity shares of Rs 10 each.

The company has fixed the offer price of Rs 16 per share. The issue will open for subscription on September 09 and the same will close on September 12.

The company has reported a turnover of Rs 21 crore for the last financial year.

It expects around 15-20 per cent growth to reach to around Rs 25 crore by the end of this fiscal.