Markolines Traffic Controls Limited IPO

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i. Markolines Traffic Controls is a Highway Operations & Maintenance (O&M) Service providing company. They thrive to make Highway Operations & Maintenance cost-effective and easier with the help of Innovation, Technology & out-of-the-box solutions. Its vast experience of 19 years in offering superior services in Highway Operations & Maintenance (O&M) has earned it a name in the (O&M) domain. Its principal business operations are broadly divided into three categories:

i) Highway Operations under which it provides services like Toll operations, Route Patrolling, and Incident management;
ii) Highway Maintenance under which it provides services like Routine Maintenance, Preventive Maintenance and Major Maintenance & Repairs (MMR);
iii) Specialized Maintenance Services under which it provides services that enhance the life and quality of the road, these are Microsurfacing (MS), Base / Subbase Stabilization (FDR), and Cold In-Place Recycling (CIPR).

ii. Since 2002, the company has executed over 90+ Highway Operations & Maintenance (O&M) projects. As of the date of this Prospectus, it has projects for Major Maintenance & Repairs of around 285.71 km of National Highways in the state of West Bengal, Maharashtra, and Rajasthan. Company has projects for Toll Operations, Routine Maintenance, Route Patrolling services, of managing around 943.31 km of National Highways and diversified in the state of Rajasthan, Uttar Pradesh, Maharashtra, Jharkhand, Bihar, Tamil Nadu, West Bengal, and Andhra Pradesh. As of July 31, 2021, the Company has an Order Book of ₹ 27,607 Lakh. “

Competitive strengths
i. Efficient business model
ii. Rich Management Experience
iii. Diversified Portfolio of Services offered

 

Objects of the Markolines Traffic Controls Limited IPO:

The Issue includes a fresh Issue of 51,28,000 Equity Shares of the Company at an Issue Price of ₹ 78.00 per Equity Share.
DRHP of Markolines Traffic Controls Limited IPO
RHP of Markolines Traffic Controls Limited IPO

Markolines Traffic Controls Limited IPO Details:

Open Date: Sep 15 2021
Close Date: Sep 20 2021
Total Shares: 5,128,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 40 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 78 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 28 2021

Promoters And Management:

1. Mr. Sanjay Bhanudas Patil, aged 53 years, is the Founder, Promoter, Chairman, and Managing Director of the Company. He has completed a Diploma in Mechanical Engineering. He is a self-driven individual who believes in teamwork. He is a dynamic leader with more than 20 years of experience in the business of Trading Industrial Goods, Construction, Infrastructure, O&M, and allied services. He has a focused and result-oriented approach in delivering high performance even during matching tight deadlines. He has expertise in forming Business Strategies and ensures timely implementation of the same. As a leader, he always delivers value to the customers and endeavor in fulfilling/exceeding their expectations. 2. Mr. Karan Atul Bora, aged 28 years, is the Executive Director of the Company. He has completed a Bachelor of Engineering in Civil and Environmental from Cardiff University Prifysgol Caerdydd. He is an Innovative thinker with Broad-Based Expertise across sectors in operations, finance, project management, and business development. He has a proven ability to quickly analyze key business drivers and develop strategies to grow the bottom line. He is a high integrity energetic leader known for his ability to envision and create successful outcomes in complex situations. 3. Ms. Kirtinandini Sanjay Patil, aged 53 years, is the Non-Executive Director of the Company. She has completed Higher Secondary Education at Maharashtra State Board in the year 1984. She has more than 5 years of experience and working as a freelancing interior designer.

Financials of Markolines Traffic Controls Limited IPO:

Particulars (in Lakhs) 2021 2020 2019
Revenue from operations 15,770.00 17,110.51 7,320.10
Cost of operation 5,959.39 7,240.34 2,992.99
Changes in inventory -413.28 -642.17 -317.98
Employee Benifit Expense 3,193.86 2,404.28 793.65
Other expenses 5,712.22 6,327.05 2,958.36
Operating Profit 1,317.81 1,781.01 893.08
OPM% 8.36% 10.41% 12.20%
Other income 25.91 43.98 28.37
Finance costs 438.1 502.37 316.57
Depreciation and amortisation 226.92 268.52 241.96
Profit before tax 679.30 1,054.10 362.99
Profit for the year 427.59 718.62 251.5
 

Comparison With Peers:

As per RHP document, the company has no listed peers to compare with.

Recommendation on Markolines Traffic Controls Limited IPO:

Review and Recommendation of Markolines Traffic Controls Limited IPO by InvestorZone is 3/10. 1. The company 's main line of business is to provide road maintenance services such as Routine Maintenance, Preventive Maintenance and Major Maintenance & Repairs . 2. The company has shown good growth from 2019 to 2020 but in 2021 due to COVID-19 the growth was hampered. 3. After the IPO, the D/E will come under 1 from current 1.33x. From this IPO, company will reduce the debt by 3.8 Crores. 4. P/E on the basis of FY21 PAT comes out to be 34x which looks very high.

Lead Manager of Markolines Traffic Controls Limited IPO:

  1. Gretex Corporate Services Private Limited

Registrar of Markolines Traffic Controls Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Markolines Traffic Controls Limited 502, A Wing, Shree Nand Dham, Sector 11, CBD Belapur Navi Mumbai - 400614 Phone: +91 22 6266 1111 Email: info@markolines.com Website: https://www.markolines.com/

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