Markolines Traffic Controls Ltd, a leading highway operation and maintenance servicing providing company, plans its initial public offering from September 15.
The issue will close on September 20. According to the prospectus filed with BSE, 51,28,000 equity shares are offered at a price of Rs 78 per Equity Share (including premium of Rs 68.00 per Equity Share) aggregating to Rs. 3,999.84 lakh. Out of the total shares 24,35,200 Equity Shares has been reserved for each Retail Individual Investors and Non-Institutional Investors.
Gretex Corporate Services Limited is the Lead Manager of the Issue. The majority of the net proceeds of the Issue will strengthen the Capital base of the company and will be utilized for working capital requirements.
Markolines Traffic Controls Limited commenced its business operations in 2002, initially started with road marking and later in 2009 envisaged and ventured the business opportunity of Operation and maintenance of highway projects. India is a developing country with huge road network which needs to upgrade to a higher standard.
Efficient Highway Operation and proper maintenance is the need of the hour. Post Issue with the enhanced capital, the company expects sustainable growth, and enhancing the visibility among their existing and potential customers.
The company’s principal business operations are broadly divided into two categories: 1) Highway Operations which includes services like Toll operations, Route Patrolling and Incident management; 2) Highway Maintenance which includes services like Routine Maintenance, Preventive Maintenance and Major Maintenance & Repairs (MMR); Company also offers Specialized Maintenance Services which are Eco friendly and enhance the life and quality of the road. These are Microsurfacing (MS), Base / Subbase Stabilization (FDR) and Cold In Place Recycling (CIPR).
For an improvement in the economy Infrastructure sector is a key driver. According to IBEF, the Government of India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have sustainable development. Highway construction in India increased at 17.00% CAGR between FY16-FY21 and in May 2021, the Ministry of Road Transport and Highways constructed 1,470 km of national highways compared with 847 km in May 2020.
Sanjay B Patil, CMD of Markolines Traffic Controls Limited says, “The big players or developers of highways did not want to diversify from their core business, we found a new business sector of helping them in Highway operations and maintenance. India has the second-largest road network in the world, spanning a total of 6.21 million kilometers (km) and still growing every day. With the huge market potential and being present in the market with performance and high credentials, Markolines certainly have the advantage for sustainable growth in coming years.”