MapmyIndia debuts today: What to expect from the listing amid weak market sentiment?

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26 Aug, 2025 12:21

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CE Info Systems, widely known as MapmyIndia, will make its debut on the bourses on December 21. Experts largely feel the listing premium could be in the range of 50-80 percent over the issue price, though there could be some impact of current market volatility.

The expected listing premium is largely attributed to the company's healthy financials with no debt burden, and stellar subscription to its initial public offering (IPO).

MapmyIndia, which offers proprietary digital maps as a service (MaaS), software as a service (SaaS) and platform as a service (PaaS), received tremendous response from investors as the offer was subscribed 154.71 times during December 9-13 with support from all kind of investors.

Non-institutional investors bought shares 424.69 times the portion set aside for them, the qualified institutional buyers’ portion was booked 196.36 times, while the reserved portion for retail investors was subscribed 15.20 times.

The company has raised Rs 1,039.6 crore at Rs 1,033 per share, through its public issue which was a complete offer for sale by selling shareholders including Rashmi Verma, Qualcomm Asia Pacific Pte Ltd and Zenrin Co.

“The company can deliver above 50 percent listing gains. It is in a niche space of offering digital maps under MaaS, PaaS and SaaS platforms. They have shown great growth in top line and bottom line in FY21 and FY22 H1,” said Divam Sharma, co-founder of Green Portfolio, a portfolio management service provider.

According to Likhita Chepa, senior research analyst at CapitalVia Global Research., CE Info Systems is expected to give listing gains of more than 80 percent given the strong investor response to the issue, factoring in the ongoing weak sentiments and volatility in the market.

Besides the grey market premium, “companies with good financial metrics and profitability are attracting the investors’ confidence which we expect to reflect in its listing price”, said Chepa.

MapmyIndia traded at a price of Rs 1,733 per share in the grey market, a 68 percent or Rs 700 premium over issue price of Rs 1,033, as per IPO Watch and IPO Central.

The volatility and sharp correction in the market wiped out its grey market premium. In middle of last week, it was trading at Rs 2,083 a share in the grey market, double the issue price.

The benchmark indices corrected more than 5 percent last week in the wake of a hawkish stance by the US Federal Reserve, the fast spread of the Omicron variant of the COVID-19 virus in Europe and other nations raising global growth concerns and relentless selling by foreign institutional investors denting market sentiment.

“The grey market premium of MapmyIndia is at around 70 percent at the moment. The premium has shrunk from 91 percent a couple of days back on the market volatility. MapmyIndia is one IPO listing on the back of rapidly rising profitability, and the street seems drawn to it,” said Sonam Srivastava, founder at investment firm Wright Research.

In H1FY22, its revenue grew 81 percent and profitability 163 percent. EBITDA (earnings before interest, tax, depreciation and amortisation) margins expanded from 18.9 percent in FY19 to 45.2 percent in H1FY22, making it attractive in any market, said Srivastava, adding that it is also an extremely healthy business that is capital efficient with no debt and strong cash flows.

Srivastava expects the stock to list at a premium but feels the market sentiment would decide the magnitude of the premium.

Ankur Saraswat, research analyst at Trustline Securities, said the listed price is expected to be Rs 1,733 per share including a strong listing premium of Rs 700 apiece. “(It is a) strong business model built on time-tested product offerings and run by an experienced management team and having barriers to entry,” said Saraswat, adding that the company has expertise in multiple areas and an established brand, and is aided by solid financial performance.

“If we see other technology companies, often run loss-making operations as they are focusing on gaining market share at the earliest at the expense of profits, MapmyIndia is an exception that enjoys leadership position with profitability in a high-growth business and reasonable valuation. So it is justifying the premium it is commanding in the market,” said Saraswat.

CE Info Systems provides products, platforms, application programming interfaces (APIs) and solutions across a range of digital map data, software and Internet of Things for the Indian market under the MapmyIndia brand, and for the international market under the Mappls brand.

As of September 2021, it had serviced over 2,000 enterprise customers since inception, including PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network (GSTN).