Digital mapping company MapMyIndia, which powers Apple maps, has fixed a price band of Rs 1,000-1,033 a share for its Rs 1,040-crore initial share-sale, which will open on December 9.
The three-day initial public offering (IPO) will conclude on December 13. The bidding for anchor investors will open on December 8, the company announced.
The IPO is entirely an offer for sale of up to 10,063,945 equity shares by existing shareholders and promoters
The OFS comprises sale of up to 42.51 lakh equity shares by Rashmi Verma, up to 27.01 lakh equity shares by Qualcomm Asia Pacific Pte Ltd and up to 13.7 lakh equity shares by Zenrin Co Ltd. In addition, the remaining 17.41 lakh equity shares will be offloaded by several other selling shareholders.
At present, promoters Rakesh Kumar Verma and Rashmi Varma hold 28.65 per cent and 35.88 per cent stake in the company.
The public issue is expected to fetch Rs 1,039.6 crore at the upper end of the price band.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for the retail investors. Investors can bid for a minimum of 14 equity shares and in multiples thereof.
Axis Capital, JM Financial, Kotak Mahindra Capital and DAM Capital Advisors are the lead managers to the issue
Check what analysts say, according to a report in Moneycontrol.
The brokerage house believes that the company is well positioned to cater to the Indian market given its leading position with a marquee client base, localised solutions for challenging geography, solid network from a continuous feedback loop in digital mapping and an asset light business model with high operating leverage.
Wright Research Founder Sonam Srivastava
The analyst finds the company an interesting play since its profitability has been rising backed by superior technology.
CE Info Systems, which runs MapMyIndia, recorded a profit of Rs 59.43 crore in FY21, up sharply from Rs 23.19 crore in the previous year.
“Even though the company has direct competition from Google Maps, its strong technology, and rising market share makes it attractive,” said Srivastava.
Prashanth Tapse, VP-Research, Mehta Equities
He believes CE Info Systems has an early mover advantage in providing advanced digital mapping technology, geospatial software, and location-based IoT technologies in India.
“Considering its market position in B2B and B2B2C with a competitive suite of software-as-a-service, platform-as-a-service, and maps-as-a-service offerings, CE Info Systems’ business model holds good for the long term,” Tapse said.
“Investors can look to subscribe for the long term, but valuations will remain a key factor before taking a view,” he added.
MapMyIndia, also known as CE Info Systems, is backed by global wireless technologies company Qualcomm and Japanese digital mapping Zenrin.
The New Delhi-based company is leading provider of advanced digital maps, geospatial software and location-based IoT technologies.
It provides products, platforms, application programming interfaces (APIs) and solutions across a range of digital map data, software and IoT under the MapmyIndia and Mappls brands. The company's customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network (GSTN).
(With Additional Inputs from Outlook Business Bureau)