Marushika Technology IPO Makes Modest Debut at ₹120, Slips Below Issue Price Against Healthy 17.94x Subscription

Marushika Technology Ltd, a company engaged in distribution of IT and telecom infrastructure products delivering wide range of IT products and services including data centers, networking, telecom systems, surveillance, cybersecurity, and power management along with installation, maintenance, and guidance providing smart solutions such as access control, parking, lighting, and waste management primarily following Business to Business (B2B) and Business to Government (B2G) model serving government sector clients like Bharat Electronic Limited (BEL), Central Electronic Limited (CEL), Delhi Metro Rail Corporation (DMRC), and National Security Guard (NSG) having completed more than 150 projects with ongoing projects worth ₹28.35 crore as of July 31, 2025, made a modest debut on NSE SME on Thursday, February 19, 2026. After closing its IPO bidding between February 12-16, 2026, the company commenced trading with a premium of 2.56% opening at ₹120.00, touched high of ₹123.00 (up 5.13%) before slipping to ₹115.30 (down 1.45% from issue price).

Marushika Technology Listing Details

Marushika Technology launched its IPO at ₹117 per share with minimum investment of 2,400 shares costing ₹2,80,800. The IPO received healthy response with subscription of 17.94 times - individual investors at 16.51 times, NII at 41.00 times, QIB at 2.92 times, total applications of 7,152.

First-Day Trading Performance

Listing Price: Marushika Technology opened at ₹120.00 representing modest premium of 2.56% from issue price of ₹117.00, touched high of ₹123.00 (up 5.13%) before slipping to low of ₹115.30 (down 1.45%), with VWAP at ₹120.02, traded volume of 9.68 lakh shares, and market capitalisation of ₹98.43 crore against pre-IPO market cap of ₹99.88 crore with sell-side dominant in order book at 64.41% indicating profit booking interest.

Growth Drivers and Challenges

Growth Drivers:

Diversified IT Solutions: Wide range of IT and telecom infrastructure products including data center solutions, server and internet protocol systems, videowall display solutions, power solutions, active networking, along with Auto-Tech Solutions for Defence and smart solutions serving multiple industry verticals.

OEM Partnerships: Strong relationships with Original Equipment Manufacturers (OEMs) ensuring quality product sourcing and competitive positioning in IT infrastructure distribution segment with experienced and qualified management team.

Consistent Financial Growth: Revenue growing from ₹60.83 crore in FY24 to ₹85.63 crore in FY25, ROE of 18.52%, ROCE of 13.89%, PAT margin of 6.45%, reducing debt-to-equity from 1.39 to 1.02.

Challenges:

Fully Priced Issue: Analyst notes issue appears fully priced with speedy growth from FY24 onwards raising eyebrows regarding sustainability of financial performance.

Leverage Position: Debt-to-equity ratio of 1.02 with total borrowings of ₹18.92 crore against net worth of ₹18.51 crore, significant promoter dilution from 79.71% to 58.19% post-IPO.

Small Scale Operations: Small paid-up equity capital post-IPO indicating longer gestation period for mainboard migration, tiny issue size of ₹26.97 crore with modest market capitalisation in competitive IT distribution segment.

Utilisation of IPO Proceeds

Working Capital: ₹14.68 crore for funding working capital requirements representing largest allocation supporting IT and telecom infrastructure distribution operations.

Debt Repayment: ₹5.00 crore for repayment and/or prepayment of certain borrowings availed by the company strengthening balance sheet.

General Corporate Purposes: Remaining amount for general corporate purposes.

Financial Performance

Revenue: ₹48.71 crore for H1 FY26, ₹85.63 crore for FY25, growth from ₹60.83 crore in FY24, reflecting expanding IT and telecom infrastructure distribution operations across B2B and B2G clients including government sector.

Net Profit: ₹3.14 crore in H1 FY26, ₹6.29 crore in FY25, growth from ₹3.14 crore in FY24, demonstrating improving profitability with post-IPO EPS of ₹7.35 and P/E of 15.91x.