The MapmyIndia IPO – Everything You Need To Know
Joining the IPO Boom is C.E Info System Limited a.k.a MapmyIndia. This company since its beginning has served over 2,000 enterprise clients (as of 30 September 2021). They have over 500 consumers on their platforms in FY 2021. PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress, and Goods and Service Tax Network (GSTN) are among its customers. There is more to this, so let’s go a little further and learn more about this firm and its IPO.
Table of Contents
- About MapmyIndia
- Promoter and investors exiting their shares
- About MapmyIndia IPO
- Book running lead managers and registrar of the MapmyIndia IPO
- Reservation of MapmyIndia IPO for various investor categories
- Objects of the MapmyIndia IPO
- Financials of MapmyIndia
- Peer comparison
- Strengths of the company
- Risks of the MapmyIndia
About MapmyIndia
C.E. Info Systems Limited (MapmyIndia) is a data and technology products and platforms firm that provides proprietary digital maps as a service, software as a service, and platforms as a service. It is India’s top provider of sophisticated digital maps, geospatial software, and location-based IoT technologies, according to the F&S Report (commissioned and paid for by the company specifically for the purpose of the Offer).
Under the MapmyIndia and Mappls brands, it provides products, platforms, application programming interfaces (APIs), and solutions across a range of digital map data, software, and IoT to:
Marquee and renowned global tech giants.
- New-age consumer IT companies.
- Leading automotive manufacturers.
- Large businesses across industry segments including BFSI, telecom, FMCG, logistics, and key government organisations.
According to the F&S Report, the digital maps and location intelligence services market is divided into two segments with both B2B and B2B2C delivery options. The two segments are:
- Digital maps services markets.
- Navigation solutions and telematics markets.
As of 31 March 2021, they have a combined staff of 734 employees for both Indian and overseas operations. They also have the backing of well-known investors like PhonePe, Qualcomm, and Zenrin.
From 2019 to 2025, the total addressable market for digital maps and location-based information services in India is estimated to increase at a CAGR of ~15.5% to $ 7.74 bn. By 2025, the entire worldwide addressable market is estimated to reach $ 173.61 bn., increasing at a CAGR of 13% (2019-2025).
Promoter and investors exiting their shares
Promoters of MapmyIndia are Rakesh Kumar Verma and Rashmi Verma. The selling shareholders are:
- Rashmi Verma will sell 42,51,044 shares.
- Qualcomm Asia Pacific Pte. will offload 27,01,407 shares.
- Zenrin Co. Ltd. will sell 13,69,961 shares.
About MapmyIndia IPO
- This is the maiden IPO of a secondary issue, consisting of an offer for sale of shares via the book building process.
- The offer includes an offer for sale (OFS) of up to 1,00,63,945 shares. The issue size is Rs 1,039.6 cr. at the top of the price range.
- The opening date for this IPO is 9 December 2021 and the closing date is 13 December 2021.
- MapmyIndia IPO is likely to be listed on the BSE and NSE.
- The face value of each share is Rs. 2.
- The set price band of this IPO is Rs. 1,000 – Rs. 1,033.
- The allocation is expected to be finalised by 16 December, and refunds will be initiated by 17 December. Meanwhile, credit of shares in the Demat account is expected by 20 December.
- One lot consists of 14 shares and is worth Rs. 14,462 at the upper range of the pricing band.
- The issue constitutes 18.90% of the company’s post-issuance paid-up capital.
Book running lead managers and registrar of the MapmyIndia IPO
The joint global coordinators and lead managers of the MapmyIndia IPO are Axis Capital Ltd., JM Financial Ltd., Kotak Mahindra Capital Co. Ltd., and DAM Capital Advisors Ltd.
The issue’s registrar is Link Intime India Pvt. Ltd.
Reservation of MapmyIndia IPO for various investor categories
- 35% is the maximum subscription amount reserved for retail investors.
- 15% is reserved for the High Net-worth Individuals (HNI).
- 50% is reserved for the Qualified institutional buyers (QIBs), wherein 60% is for anchor investors, 1/3rd of which shall be reserved for domestic mutual funds only.
Objects of the MapmyIndia IPO
- To carry out the OFS of ~10,063,945 shares by the selling shareholders.
- Reap the benefits of listing the shares on the stock exchanges.
Financials of MapmyIndia
- As of 30 September 2021, it has posted earnings per share (EPS) of Rs. 8.78.
- As of 30 September 2021, the net asset value (NAV) stood at Rs. 76.28.
- As of 30 September 2021, it has posted a negative return on net worth (RoNW) of 11.51%.
- As of 30 September 2021, it reported an EBITDA of Rs. 461.23 mn.
Following are the financials for 2019, 2020, and 2021
Peer comparison
According to the offer paperwork, there are no listed companies in India that engage in a business similar to that of this company.
Strengths of the company
- With an early mover advantage, it is India’s digital mapping pioneer.
- It is the market leader in India for digital maps and location information on both the B2B and B2B2C market.
- Its market position is built around proprietary technology and network effects resulting in strong entry barriers.
- It is an independent map, geospatial and location-based IoT technology company with a robust data governance policy.
- It has prestigious clients with whom it has solid working connections.
- It has a consistent track record of profitability.
Risks of the MapmyIndia
Investments in equities and equity-related securities are risky. Before making an investment choice in an IPO, you should carefully consider the risk factors.
- It is dependent on trends in the sectors where its enterprise customers operate. Negative sentiments or downturns in global macroeconomic conditions or disruption in business activities can impact its customers, which can impact its sales to the customers.
- A part of the business is dependent on the performance of the automotive sector, including in its key market, India. Any adverse changes in the conditions affecting the sector can adversely impact the business, results of operations and financial condition.
- The inability to maintain or update the map database or errors in the map database could harm its reputation or adversely affect its ability to sell the products and services.
- It is dependent on the success of the research and development (R&D). Any failure to develop competitive new or improved products and services or process improvements or updated map data could adversely affect its business, financial condition and results of operations. This may negatively impact the competitive position.
- Any inability to protect its intellectual property (IP) or any third-party claims in relation to infringement of intellectual property rights could adversely affect the business, reputation, financial condition, results of operations and cash flows.
While the majority of debuts have been successful, the recent underperformance of the country’s digital payments pioneer Paytm, was an outlier. MapmyIndia is profitable, in contrast to several of India’s more well-known businesses. If you are interested in this investment opportunity, make sure to conduct thorough research before subscribing to MapmyIndia IPO. To ensure a seamless experience while subscribing to MapmyIndia IPO, read the article on how to subscribe to an IPO.
