The initial public offering (IPO) of Markolines Traffic Controls, a highway operations and maintenance service providing company, will open for subscription on Wednesday, September 15.

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The equity shares of Markolines Traffic Controls are proposed to be listed on the SME Platform of BSE.

The company will have to be mandatorily be listed and traded on the SME Platform of BSE for a minimum period of two years from the date of listing and only after that it can migrate to the Main Board of the BSE as per the SEBI guidelines and procedures laid down under Chapter IX of the SEBI (ICDR) Regulations, 2018.

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The IPO, which will close on September 20, is a fixed price issue of 51.28 lakh equity shares at Rs 78 per share. This makes the aggregate size of the IPO of Rs 40 crore.

Here are some key things to know about the Markolines Traffic Control IPO:

Issue Date: The IPO opens for public subscription on September 15 and closes on September 20.

Issue Price: The company has set an issue price of Rs 78 for the IPO.

Lot size: The minimum order quantity is 1,600 shares.

Investor categories: Out of the total shares, about 24.35 lakh equity shares have been reserved for retail individual investors and non-institutional investors.

Fund utilisation: The company plans to utilise the net proceeds from the IPO to prepay or repay debt, meet working capital requirements and for general corporate purposes.

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About Markolines Traffic Controls

Markolines Traffic Controls is a highway operations and maintenance service providing company that was incorporated on November 08, 2002.

Its principal business operations are broadly divided into three categories: i) Highway Operations which includes providing services like toll operations, route patrolling and incident management; ii) Highway Maintenance which offers services like routine maintenance, preventive maintenance and major maintenance and repairs; iii) Specialized Maintenance Services that include micro surfacing, base/sub base stabilization and cold in-place recycling.

A major chunk of the company’s revenue comes from the maintenance and repairs segment. Its revenue from execution of projects in major maintenance and repairs segment constituted about 80 percent of its total revenue for the financial year ended on March 31, 2021.

Financials

The company posted a net profit of Rs 4.27 crore in FY21 as against a profit of Rs 7.18 crore in FY20 and Rs 2.52 crore in FY19.