Marc Techno NSE SME IPO review (Not Rated)

•    The company is engaged in the business of infrastructure consultancy services.
•    It primarily operates on B2G model with major government projects.
•    The company is operating in a highly competitive segment.
•    It posted growth in its top and bottom lines for the reported periods.
•    Based on its recent financial data, the issue appears aggressively priced.
•    Well-informed investors may park moderate funds for long term.

ABOUT COMPANY:
Marc Technocrats Ltd. (MTL) is engaged in the business of 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. It provides services for the infrastructure projects, such as roads and highways, railways, buildings, and water resources.

The company primarily operates on a Business-to-Government (B2G) model, with the majority of its revenue derived from delivering its services to government department and ministries such as Ministry of Road Transport and Highways (MoRTH), National Highways and Infrastructure Development Corporation Limited (NHIDCL), National Highways Authority of India (NHAI), Public Works Departments (PWDs) and Railways. The company provides comprehensive consultancy services throughout the entire lifecycle of infrastructure projects, from concept to commissioning.

The company provide service of preparation of Detailed Project Report. Under DPR, the objective of the company is to establish technical, economical, and financial viability of the project and to prepare detailed project reports for construction of roads, highways, bridges and other infrastructure projects. The viability of projects is established by considering the requirements related to rehabilitation, upgrading, and improvement based on highway and pavement design, the provision of service roads as needed, intersection types, rehabilitation or widening of existing and/or construction bridges and structures, as well as integration of road safety measures.

The detailed project report inter-alia includes detailed design, working drawings, detailed cost estimates, economic and financial viability analysis, environmental and social impact assessment. Moreover, the report comprises several essential elements, such as an inception report, information study and conceptual planning. It also incorporates site study and surveys, traffic surveys, and alignment finalization. Subsurface investigations, geotechnical investigations, evaluations of utility services and other physical features, environmental studies, assessments of seismicity, and site evaluations are also integral parts of this detailed project report. As of November 30, 2025, it had 181 employees on its payroll.

ISSUE DETAILS/ CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 4579200 equity shares of Rs. 10 each to mobilize Rs. 42.59 cr. at the upper cap. The issue comprises of 3669600 fresh equity shares (worth Rs. 34.13 cr. at the upper cap), and an Offer for Sale (OFS) of 909600 equity shares (worth Rs. 8.46 cr. at the upper cap). The company has announced a price band of Rs. 88 – Rs. 93 per share. The minimum application to be made is for 2400 shares and in multiples of 1200 shares thereon, thereafter. The issue opens for subscription on December 17, 2025, and will close on December 19, 2025. The IPO constitute 26.45% of the post-IPO paid-up capital of the company. The shares will be listed on NSE SME Emerge. From the net proceeds of the IPO, it will utilize Rs. 10.26 cr. for capex on purchase of equipment and machineries, Rs. 17.50 cr. for working capital, and the rest for general corporate purposes. 

The IPO is solely lead managed by Narnolia Financial Services Ltd., and Maashitla Securities Pvt. Ltd. is the registrar to the issue. Giriraj Stock Broking Pvt. Ltd. is the market maker. Nexgen Financial Solutions Pvt. Ltd.is a syndicate member. The issue is underwritten to the tune of 15.01% by Narnolia Financial and 84.99% by Giriraj Stock Broking.

The company has issued initial equity capital at par value, and issued further equity shares at a fixed price of Rs. 500 per share in May 2014. It has also issued bonus shares in the ratio of 45 for 1 in March 2015, 1 for 1 in May 2017, 2 for 1 in October 2018 and September 2020, 1 for 10 in March 2022, and 2 for 5 in September 2024. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs. 0.01, and Rs. 17.86 per share.

Post-IPO, company’s current paid-up equity capital of Rs. 13.64 cr. will stand enhanced to Rs. 17.31 cr. Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 161.01 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 20.57 cr. / Rs. 2.64 cr. (FY23), Rs. 26.95 cr. / Rs. 3.45 cr. (FY24), Rs. 48.56 cr. / Rs. 7.48 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it earned a net profit of Rs. 5.76 cr. on a total income of Rs. 32.64 cr. 

For the last three fiscals, the company has reported an average EPS of Rs. 3.91, and an average RoNW of 24.49%. The issue is priced at a P/BV of 3.77 based on its NAV of Rs. 24.64 per share as of September 30, 2025, and at a P/BV of 2.38 based on its post-IPO NAV of Rs. 39.13 per share (at the upper cap).

If we attribute FY26 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 13.98, and based on FY25 earnings, the P/E stands at 21.53. The issue appears aggressively priced.

For the reported periods, the company has posted RoCE margins of 20.37 % (FY23), 23.21% (FY24), 35.63% (FY25), 22.93% (H1-FY26), and reported PAT margins of 13.07%, 13.26%, 15.66%, 17.88%, respectively, for the referred periods.

DIVIDEND POLICY:
The company has not paid any dividends for any financial year. It will adopt a prudent dividend policy, based on its financial performance and future prospects. 

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Dhruv Consultancy, Rudrabhishek Enterprises, Ceinsys Tech, as its listed peers. They are currently trading at a P/E of 13.4, 21.0, and 17.5 (as of December 12, 2025). However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACL RECORD:
This is the 28th mandate from Narnolia Financial in the last three fiscals. Out of the last 10 listings, 1 listed at discount, and the rest with premium ranging from 17.39% to 90.00% on the date of listing.