Marc Loire Lists 20% Below Issue Price Despite Fair Subscription Response

The women's footwear specialist, Marc Loire Fashions Limited, made a disappointing debut on the BSE SME platform on July 7, 2025. After closing its IPO bidding between June 30 - July 2, 2025, the company commenced trading with a significant 20% discount to its issue price, reflecting weak investor sentiment towards the fashion retail sector despite expansion plans.

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Marc Loire Fashions IPO Listing Details

Marc Loire Fashions Limited launched its fixed price IPO at ₹100 per share with minimum investment of 1,200 shares costing ₹1,20,000. The IPO received moderate response with subscription of 2.33 times - retail segment showing strong interest at 3.61 times whilst NII participation remained modest at 1.60 times, demonstrating mixed investor sentiment across categories.

Listing Price: The Marc Loire Fashions share price opened at ₹80 on BSE SME on July 7, 2025, representing a discount of 20% from the issue price of ₹100, delivering disappointing returns for investors despite retail expansion plans.

First-Day Trading Performance Outlook

Marc Loire Fashions IPO experienced weak debut performance with substantial discount despite moderate subscription levels, reflecting investor scepticism about fashion retail companies' growth prospects and valuation sustainability. The company, incorporated in 2014, specialises in high-end women's footwear combining style and comfort, operating through dual D2C and B2B models with presence across Reliance Centro Stores and Lulus Group International Mall, supported by 40+ vendors and 25 employees as of October 2024.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range of women's footwear including ethnic sandals, formal sandals, athleisure, and wedges with over 800 unique styles catering to diverse preferences
• Multi-Channel Presence: Dual D2C and B2B model with online platforms and offline retail through established partners including Reliance Centro Stores and Lulus Group
• Expansion Plans: Setting up 15 new Exclusive Brand Outlets (EBOs) to enhance retail presence and market penetration across India
• Strong Financial Metrics: Healthy ROE of 43.75%, impressive ROCE of 60.56%, and PAT margin of 11.08% demonstrating operational efficiency

Challenges:
 

• Catastrophic Market Response: 20% discount validates severe market concerns about business sustainability and competitive positioning in fashion retail sector
• Sustainability Questions: Analyst highlights boosted bottom lines from FY24 raising sustainability concerns in highly competitive and fragmented footwear market
• Small Scale Operations: Limited workforce of 25 employees and small equity base indicating longer gestation period for mainboard migration and scale expansion
• Competitive Market: Operating in highly competitive women's footwear segment with established players and pricing pressures affecting margin sustainability

Utilisation of IPO Proceeds

• Retail Expansion: ₹5.27 crore for capital expenditure to launch 15 new Exclusive Brand Outlets to enhance market presence
• Infrastructure Enhancement: ₹0.40 crore for purchase of multi-purpose racks to support retail operations
• Working Capital: ₹9.35 crore for working capital requirements to support business operations and inventory management
• General Corporate Expenses: ₹3.73 crore for strategic initiatives and operational requirements

Financial Performance of Marc Loire IPO

• Revenue: ₹42.46 crore for FY25, showing modest 5% growth from ₹40.40 crore in FY24, reflecting steady but limited business expansion
• Net Profit: ₹4.71 crore in FY25, demonstrating 15% growth from ₹4.08 crore in FY24, though sudden improvement patterns raise sustainability concerns among analysts
• Financial Metrics: Strong ROE of 43.75%, excellent ROCE of 60.56%, minimal debt structure, healthy PAT margin of 11.08%, though concerning EBITDA margin decline from 14.91% to recent levels

Marc Loire Fashions' disappointing listing performance with 20% discount reflects significant market concerns about fashion retail sector challenges and sustainability of recent financial improvements.