Infrastructure consultancy firm MARC Technocrats made its debut on the NSE SME platform, with a less-than-stellar performance. Despite strong subscription numbers during its Initial Public Offering (IPO), the company's shares opened at a significant discount to its issue price.

MARC Technocrats Listing Performance

The company's IPO had garnered considerable interest from investors, with the issue being oversubscribed 9.87 times. However, contrary to expectations, MARC Technocrats' shares listed at ₹74.40 on the NSE SME platform, marking a 20.00% discount to its IPO price of ₹93.00. This tepid debut highlights the unpredictable nature of the stock market, especially for new listings in the SME segment.

Coal India Subsidiary Listings: A Game Changer

In stark contrast to MARC Technocrats' performance, Coal India has emerged as a significant value creation story with its subsidiary listing announcements. The company's shares have responded positively to news of potential listings of major subsidiaries MCL and SECL, following earlier approval for BCCL listing.

Expert Analysis on Value Unlocking Potential

Parthiv Jhonsa from Anand Rathi Institutional provided comprehensive insights on Coal India's subsidiary listing strategy. "This is definitely something big coming out from the company with BCCL already on track to get listed in next about good two to three weeks kind of a timeline," Jhonsa explained. He highlighted that SECL and MCL both contribute substantially to Coal India's profitability.

MCL's Operational Excellence

Jhonsa emphasized MCL's superior operational metrics compared to other subsidiaries. "As far as MCL is concerned, it basically beats a lot of front compared to the other subsidies as far as your manpower productivity or output, they call it OMS is concerned, OBR is concerned. So, all those front MCL basically is way better placed than the entire blended basis," he noted.

Valuation Methodology and Market Impact

Using BCCL as a benchmark, Jhonsa provided valuation insights: "Even if you just take say BCCL as a ball mark, 13,000 crores, if you see BCCL in H1 whatever the numbers the company has declared, the profitability is actually down substantially, almost good about 80% to 83% it is down." Despite this, he sees substantial value unlocking potential for MCL and SECL given their stronger operational performance.

Investment Outlook and Price Targets

Jhonsa maintains a target price of ₹440.00 for Coal India, representing approximately 10% upside from current levels. He emphasized that the actual impact will depend on final valuations and dilution percentages, noting that the process is still in preliminary stages requiring regulatory approvals.

Strategic Implications

The subsidiary listings represent a significant strategic shift for Coal India, potentially reducing holding company discounts while unlocking substantial shareholder value. However, Jhonsa cautioned that the company will retain major subsidiaries like NCL and CCL, maintaining its diversified portfolio. The success of these listings could set a precedent for further value unlocking initiatives in the Indian public sector.

Infrastructure consultancy services provider MARC Technocrats made a disappointing debut on the NSE SME platform, with shares listing at ₹74.40 per share, marking a significant 20% discount to the IPO price of ₹93.00. The weak listing came despite strong investor interest during the subscription period.

IPO Performance and Subscription Details

The ₹43.00 crore IPO, which closed for subscription on December 19, demonstrated robust investor appetite across all categories:

MARC Technocrats had offered its shares in a price band of ₹88.00 to ₹93.00 per share, ultimately fixing the issue price at the upper end of ₹93.00.

IPO Structure and Fund Utilization

The public offering comprised two components designed to meet different objectives:

Proceeds from the fresh issue will flow directly into the company's treasury, while the offer for sale component provides liquidity to existing shareholders seeking partial exits.

Business Operations and Client Base

MARC Technocrats operates as an infrastructure consultancy services provider, offering comprehensive solutions across multiple segments. The company's service portfolio includes:

• Supervision and quality control services
• Detailed project reports preparation
• Techno-financial audits
• Pre-bid advisory services

The company's operations span critical infrastructure segments including roads and highways, railways, buildings, and water resources. MARC Technocrats follows a Business-to-Government (B2G) model, deriving the majority of its revenue from government bodies and public sector clients. Key customers include the Ministry of Road Transport and Highways, NHAI, NHIDCL, various public works departments, and the Railways. The company maintains a workforce of 181 employees.

Financial Performance

MARC Technocrats has demonstrated strong financial growth in recent periods, showing significant expansion across key metrics:

For FY25, the company reported total income of ₹48.56 crore with profit after tax reaching ₹7.48 crore, reflecting the company's improving operational efficiency and market position in the infrastructure consultancy sector.