Marg on the 'debt recovery' road

Marg Ltd is in the spotlight today morning. The stock, which has closed yesterday at Rs.8.91, opened 20% higher at Rs.10.69, hitting the upper circuit. Its 52-week high is at Rs.20.87.

The company, mainly a construction and realty company. Its operates the Karaikal Port, having a current capacity of 21 MMTPA. In addition, the Group has developed 1.2 Mil sqft of residential space, and currently executing 21 major projects through its EPC division. Major developments include a 1.85 million sq.ft. integrated development – 'MARG Junction Mall' and a unique 23 million sq. ft. integrated industrial and services township, 'MARG Swarnabhoomi'.

 The stock hit the 20% UC today on news that the Shapoorji Pallonji group is in an advanced stage of talks to pick up 51% stake in Karaikal Port in Puducherry for around R900 crore.  The news is that Shapoorji will also take over a part of the outstanding debt of Karaikal Port Private Limited (KPPL), which currently stands at R1,800 crore, as part of the transaction.

The money raised from the stake sale will be used to repay KPPL’s debt though repayment schedule of remaining debt it yet being negotiated.

KPPL has been under the debt cloud. In Feb’16 a consortium of 12-lenders of KPPL led by Indian Bank took over majority control of the company by invoking pledged shares and then in April, there was news that Indian Bank had sold NPAs of KKPL to Edelweiss ARC.