Marco Cables & Conductors IPO - Review, Valuation, Date & GMP

Marco Cables & Conductors Limited - Complete Overview

Founded in 1989, Marco Cables & Conductors Limited specializes in the manufacturing and sale of various types of wires, cables, and conductors in India.

The company's initial operations included the production of wires with both aluminium and copper conductors, XLPE/PVC cables, and Aerial Bunched Cables. Over time, they expanded their product range to include AAAC (All Aluminium Alloy Conductor) and ACSR (Aluminium Conductor Steel Reinforced) Conductors, establishing a strong presence in the industry.

The majority of the company's products are supplied to electricity boards in different Indian states such as Maharashtra, Gujarat, Tamil Nadu, Telangana, Haryana, Chhattisgarh, and Madhya Pradesh, as well as to turnkey contractors across the country.

Marco Cables & Conductors Limited offers a diverse product lineup that includes LT XLPE Cables, LT PVC Cables, LT Aerial Bunched Cables (ABC), AAAC Conductors, and ACSR Conductors. 

These products meet stringent quality standards and are certified compliant with the Bureau of Indian Standards (BIS) and the International Organization for Standardization (ISO).

The company's manufacturing facility is located in Sinnar, Nasik, Maharashtra, India, with a combined installed production capacity of 18,000 Kms p.a. Additionally, the company has a warehouse adjacent to its manufacturing unit.

 

What does the company do? 

Marco Cables & Conductors Limited operates in the industry of manufacturing and selling wires, cables, and conductors within India.

 

 

Company Products 

The company's range of products encompasses LT XLPE Cables, LT PVC Cables, LT Aerial Bunched Cables (ABC), AAAC Conductors, and ACSR Conductors.

 

IPO Overview 

The Marco Cables & Conductors Limited IPO date is set to open on September 21, 2023, and will conclude on September 25, 2023. This upcoming SME IPO is anticipated to be listed on the NSE SME platform on October 4, 2023.

The Marco Cables & Conductors Limited IPO price is fixed at Rs. 36 per share, with a face value of Rs. 10 per share. Each lot of shares comprises 3000 shares, and the total issue size for the IPO amounts to Rs. 18.73 Crores.

 

Marco Cables & Conductors Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	21 September 2023
IPO Closing Date	25 September 2023
IPO Allotment Date	28 September 2023
Refund initiation	29 September 2023
IPO Listing Date	4 October 2023

 

Marco Cables & Conductors Limited IPO Details 

IPO Opening & Closing Date	21 September to 25 September 2023
Face value	Rs.10 per Share
Issue Price	Rs. 36 per Share
Lot Size	3000 Shares
Price of 1 lot	Rs.108,000
Issue Size	5,202,000 Shares (aggregating up to Rs. 18.73 Cr)
Offer for sale	2,601,000 shares of Rs. 10 (aggregating up to Rs. 9.36 Cr)
Fresh issue	2,601,000 Shares (aggregating up to Rs. 9.36 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Marco Cables & Conductors Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Marco Cables & Conductors Limited IPO Reservation 

Other Investors Share Portion	50%
Retail Investors Share Portion	50%

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	5658.84	5954.62	6993.44
Total Revenue	4282.91	5665.31	5693.72
PAT	12.25	33.49	280.71
Net Worth	911.25	944.75	1560.86
Reserve & Surplus	621.84	655.34	1238.90
Total Borrowings	3522.22	3665.19	3757.73

 

State-wise Revenue of Marco Cables & Conductors Limited

(Amount in Lakhs)

States	FY 2022-23	FY 2021-2022	FY 2020-21
Gujarat	4,103.15	3487.01	1,897.78
Tamil Nadu	251.20	286.96	752.94
Telangana	973.69	640.47	452.86
Maharashtra	494.98	304.58	362.03
Chhattisgarh	0.00	0.00	493.09
Haryana	332.30	1,837.83	0.00
Madhya Pradesh	552.86	21.08	0.00

 

 Detailed revenue breakup for the FY ending March 31, 2023

(Amount in Lakhs)

Particular	FY 23	FY 22	FY 21
Domestic	5,676.79	5,641.00	4,239.18
Export	-	-	-
Total	5,676.79	5,641.00	4,239.18

 

Revenue bifurcation on the basis of types of products sold by the Company

(Amount in Lakhs)

Particular	FY 23	FY 22	FY 21
LT PVC & LT XLPE Cables	2138.12	2906.48	1970.29
LT Aerial Bunched Cables	3508.58	3004.49	2431.74
Conductors	995.97	718.82	585.11
Others (sale of scraps)	55.94	26.59	14.85
Total	6698.61	6656.38	5001.99

 

Revenue bifurcation on the basis of the mode of sales by the company

(Amount in Lakhs)

Particular	FY 23	FY 22	FY 21
Tenders	5476.73	6273.17	4017.96
EPC contractors	744.33	118.03	969.18
Direct Sales	421.60	238.60	0.00
Others (sale of scraps)	55.94	26.59	14.85
Total	6698.61	6656.38	5001.99

 

Revenue bifurcation on the basis of private entities and government entities

(Amount in Lakhs)

Particular	FY 23	FY 22	FY 21
Government entities	5476.73	6273.17	4017.96
Private entities	1221.88	383.21	984.03
Total	6698.61	6656.38	5001.99

 

Objective of the Issue

The raised funds will be allocated for the following purposes:

• Financing the capital expenditure needs of the company, including the acquisition of a Solar Power System and a 1 + 12 Rigid Stranding Machine.
• Supporting additional working capital requirements.
• Covering general corporate expenses.

 

Promoters and Management of Marco Cables & Conductors Limited

Mr. Sumit Sugnomal Kukreja, Mr. Sugnomal Mangandas Kukreja, and Ms. Komal Sumit Kukreja are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	72.18%

 

Peer Comparison 

Below are the listed peers of the organisation :

Company Name	CMP (Rs.)	Basic EPS (Rs.)	PE Ratio (times)
Marco Cables & Conductors Limited	36.00	1.78	20.22
V-Marc India Limited	100.40	4.58	21.92
Ultracab (India) Limited	15.81	0.61	25.92
Relicab Cable Manufacturing Limited	79.00	1.49	53.02
Dynamic Cables Limited	586.65	14.09	41.64

 

IPO's Valuations

With an IPO price of Rs. 36 per share and an EPS of Rs. 1.78, the company's PE ratio, based on the issue price, stands at 20.22.

 

Dividend Policy

According to the Marco Cables & Conductors IPO DRHP, the company has not made any dividend declarations in the past. Additionally, future dividend payments will be contingent upon the company's financial stability.

 

IPO's Strengths

• Meeting the Qualification Criteria in Government Tenders.
• Guarantee of Exceptional Quality and High Standard Services.
• Firmly Established Customer Base.
• Seasoned Promoters and Directors.
• Customized Product Offerings to Meet Customer Specifications.
• Robust Financial Management and Effective Marketing Strategies.

 

IPO Weaknesses

• The Company is currently involved in unresolved legal proceedings.
• Stringent quality requirements must be met, otherwise any product defects or failures could have adverse effects on the business.
• The Restated Financial Statements have been furnished by Chartered Accountants who are peer-reviewed but not the Company's Statutory Auditor.
• A substantial portion of the Company's revenue is generated by its top 10 customers.
• The Company's operational revenue relies on the Revamped Distribution Sector Scheme (RDSS) implemented by the central government.
• The Company is subject to a multitude of laws and extensive government regulations.
• The Company operates under various statutory permits, licenses, and approvals.
• The Company experienced negative cash flows in previous years.
• The Company faces significant competitive pressures from other participants in the industry.
• Historical instances of delays, non-filing, or non-compliance with certain statutory regulations applicable to the Company have occurred.

 

 

IPO GMP Today

Marco Cables & Conductors SME IPO GMP is not yet available.

 

Conclusion

Marco Cables & Conductors Limited operates within a competitive market, but the company has established a robust customer base. Moreover, the company delivered outstanding performance in FY23, even though it has faced negative cash flow situations in the past. Informed investors may consider bidding for the issue after conducting a thorough analysis.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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