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MapMyIndia IPO opens today: Should you subscribe? See what experts, brokerages recommend
MapMyIndia initial public offer (IPO) is opening for subscription on Thursday, December 9, 2021.
MapMyIndia initial public offer (IPO) is opening for subscription on Thursday, December 9, 2021. The three-day IPO of Digital mapping company will conclude on December 13.
The company MapMyIndia has fixed the price band of Rs 1,000-1,033 per equity share of face value of Rs 2 each for its upcoming initial public offer (IPO).
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The initial public offer (IPO) of CE Info Systems, the parent company of MapmyIndia, 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.
Ahead of the opening of the issue, experts have shared their views on the IPO and this is what they have to say about MapMyIndia IPO.
"Valuation on higher side but growth prospect is also high"
Speaking about this IPO, Ravi Singhal, Vice Chairman at GCL Securities, said, Map my india offers great business model with entry barriers.
"It is generally a good promoters' pedigree.The fundamentals are good as it is an almost zero debt company. B2B business looks great. Also, good growth potentials look promising," he said.
The analyst says concerns remain that any technology updation or change in the existing setup can affect the business, he said, adding, valuation is on the higher side but growth prospect is also high.
"Can subscribe for listing gains"
MaPmy India is a company providing services like advanced digital maps, geospatial mapping and location-based IoT services and is backed by Qualcomm and Japanese company Zenrin, said Manoj Dalmia, Founder and Director-Proficient Equities Limited.
"Qualcomm will exit its entire 5% stake, Zenrin will sell around 3% stake of the holdings, while Phone Pe will have around 18% stake. One may subscribe for listing gains considering its GMP and client base," said Manoj Dalmia.
"Can subscribe for long term"
Ravi Singh, Vice President & Head of Research, ShareIndia, said the company's profitability has shown good scope backed with strong technology and high operating leverage. "It's significant clientele and rising market share makes it a good bet for long term investment. We advice investors may look to subscribe the IPO for long term and keep a close watch on the future valuations," suggested Singh.
"No listed companies in India whose business is comparable- Subscribe"
Brokerage house Marwadi Shares and Finance Limited also recommended subscribe for this IPO.
"There are no listed companies in India whose business is comparable with that of the company’s business. We assign the “Subscribe” rating to this IPO as the company is one of the leading data and technology products and platform company having a well-known brand MapmyIndia with customers like PhonePe, Hyundai and Flipkart. Also, it is available at a reasonable valuation considering the future growth potential," said Marwadi Shares and Finance Limited
About the IPO
Earlier, the company has fixed half of the issue size 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 in this IPO. Axis Capital, JM Financial, Kotak Mahindra Capital and DAM Capital Advisors are the lead managers to the issue.
MapMyIndia IPO Timeline
Application start date: December 9, 2021
Application end date: December 13, 2021
Allotment start date: December 16, 2021
Refund initiation date: December 17, 2021
Share allotment date: December 20, 2021
Listing date: December 21, 2021
Business & company details
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).
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