The initial public offering of Markolines Traffic Controls, a highway operations & maintenance services provider, opened for subscription on September 15.
The company plans to raise nearly Rs 40 crore through its public issue of 51,28,000 equity shares at a fixed price of Rs 78 per equity share. The issue closes on September 20.
Of the total issue, 2,57,600 equity shares are reserved for subscription by market maker. The issue will constitute 26.84 percent of the post-issue paid-up equity share capital of the company.
The company intends to use the net fresh issue proceeds for repaying debts, working capital requirements, and general corporate purposes.
Having a vast experience of 19 years in offering highway services, its principal business operations are broadly divided into three categories – highway operations, highway maintenance, and specialized maintenance services.
Under highway operations, the company provides services like toll operations, route patrolling and incident management, while under the highway maintenance category, it provides services like routine maintenance, preventive maintenance and major maintenance & repairs (MMR).
Under the specialized maintenance services, it provides services which enhance the life and quality of road, these are microsurfacing (MS), base / sub base stabilization (FDR) and cold in place recycling (CIPR).
Sanjay Bhanudas Patil, chairman and managing director, and Karan Atul Bora, executive director, are the promoters of the company, owning 48.78 percent stake in the company.
In the financial year 2020-21, the company’s profit fell to Rs 4.27 crore from Rs 7.18 crore in the previous year, while revenue declined to Rs 157.70 crore from Rs 171.1 crore. Profit in FY19 was at Rs 2.51 crore on revenue of Rs 73.20 crore.
Equity shares will be listed on the SME Platform of BSE. Gretex Corporate Services is the book running lead manager to the issue.
