Weak market debut: Marc Technocrats shares list at 20% discount to SME IPO price

Marc Technocrats

• Marc Technocrats shares listed at Rs 74.40, 20 percent below IPO price of Rs 93
• IPO was subscribed over 9 times, with strong retail investor interest
• Proceeds to fund machinery purchase, working capital, and corporate purposes

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The shares of Marc Technocrats made a weak stock market debut on December 24, listing at Rs 74.40 apiece on the NSE Emerge platform. This marks a 20 percent discount to the SME IPO price of Rs 93 per share.

The company debuted with a market capitalisation of Rs 128.81 crore.

Listing premium vs grey market estimates:

The weak listing has missed the muted grey market estimates. Ahead of listing, the unlisted shares of the company were trading with a discount of more than 2 percent over the IPO price at Rs 91 apiece.

The grey market estimate had fallen from the 4.3 percent premium with which unlisted shares were trading on December 18.

Marc Technocrats IPO:

Marc Technocrats had launched its initial public offering (IPO) earlier this month to raise Rs 42.59 crore through a fresh issue of 36.69 lakh shares and an offer for sale (OFS) of 9.10 lakh shares by the existing shareholders.

The price band for the IPO was set at Rs 88-93 per share. Retail investors could bid for a minimum of 2,400 shares, requiring an investment of 2.23 lakh, and in multiples of 1,200 thereafter.

The IPO saw strong investor interest during its three days of public bidding, being subscribed more than 9 times its offer size between December 17 and December 19. Retail investors showed the most interest in the maiden public issue of the company, booking their reserved portion nearly 11 times.

Marc Technocrats provides infrastructure consultancy services, comprising supervision and quality control (SQC), preparation of detailed project reports (DPRs), third-party techno-financial auditor and pre-bid advisory services.

How will the IPO proceeds be used?

Marc Technocrats aims to use the fresh issue proceeds to fund capital expenditure requirements for the purchase of machineries, working capital requirement as well as general corporate purposes.

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