CE Info Systems, which owns the brand MapmyIndia, has geared up for floating its maiden public issue on December 9.
The company is a leading provider of advanced digital maps, geospatial software, and location-based IoT technologies in India. It has built maps for more than 6 million km, covering 98.5 percent of India’s road networks under the MapmyIndia brand. It also caters to the international market under the (Mappls) brand.
Let’s take a look at the 10 key points to know before subscribing to the public issue:
1. IPO Dates
The company will launch its initial public offering for subscription on December 9, and the offer will close on December 13.
2. Price BandThe price band for the offer has been fixed at Rs 1,000–1,033 per equity share of face value of Rs 2 each.
3. Offer DetailsThe IPO of 1,00,63,945 equity shares amounting to Rs 1,039.6 crore is entirely an offer-for-sale by selling shareholders, including investor Qualcomm Asia Pacific Pte Ltd. Hence, the company will not receive any funds from IPO as all the money will go to selling shareholders.
Individual selling shareholder Rashmi Verma will sell 42,51,044 equity shares, while Qualcomm Asia Pacific Pte Ltd will offload 27,01,407 equity shares, and Zenrin Co Ltd will sell 13,69,961 equity shares.
In addition, the remaining 17,41,533 equity shares will be sold by several other shareholders.
Investors PhonePe India, Zenrin, and Qualcomm held 19.15 percent, 8.78 percent, and 5.07 percent shareholding, respectively, in the company.
The issue portion reserved for QIB investors will not be more than 50 percent. Not less than 15 percent of the offer shall be available for allocation to non-institutional bidders and not less than 35 percent for allocation to retail individual bidders.
The promoter shareholding will come down to 53.73 percent after the issue from 61.71 percent now.
4. Objectives of the IssueThrough this public issue, the company aims to carry out the offer for the sale of 10,063,945 equity shares and achieve the benefits of listing the equity shares on the stock exchanges.
5. Lot Size and Reserved Portions
Investors can bid for a minimum of 14 equity shares and in multiples of 14 equity shares thereafter. Retail investors can invest a minimum of Rs 14,462 for one lot, and their maximum investment would be Rs 1,88,006 for 13 lots.
6. Company Profile and IndustryIncorporated in 1995, CE Info Systems is a data and technology products and platforms company, offering proprietary digital maps as a service (MaaS), software as a service (SaaS) and platform as a service (PaaS). It is an early mover in India’s digital mapping space and pioneered several digital mapping technologies such as AI-powered 4D HD digital map of real world, and NCASE mobility suite for digital vehicles. It offers widest range of location-powered software and most comprehensive set of offerings compared to its larger global peers. All these make it a market leader amongst B2B and B2B2C clients of India.
It provides products, platforms, application programming interfaces (APIs) and solutions across a range of digital map data, software and IoT for the Indian market under the MapmyIndia brand, and for the international market under the Mappls brand.
Its most of the products, platforms and solutions are digital, created in-house, and then deployed and delivered over the cloud which makes the company asset light and with relatively low variable cost base.
As of September 2021, it had serviced over 2,000 enterprise customers, including marquee and renowned global tech giants, new-age consumer internet technology companies, leading automotive manufacturers, large businesses across industry segments such as BFSI, telecom, FMCG, industrials, logistics and transportation, and key government organisations. Some of its customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network (GSTN).
The total market for Indian digital map services is expected to grow from Rs 12,614 crore in 2019 to Rs 31,164 crore in 2025 at a CAGR of 16.1 percent between 2020 and 2025 and the global digital map services market is expected to grow from Rs 5,26,000 crore in 2019 to Rs 11,27,000 crore in 2025 at a CAGR of 13.6 percent.
7. Financials
CE Info Systems recorded a profit of Rs 59.43 crore in the financial year 2020-21, increasing sharply from Rs 23.19 crore in previous year. Revenue during the same period rose to Rs 152.46 crore from Rs 148.63 crore.
Profit in the six-month period ended September 2021 jumped to Rs 46.76 crore, compared to Rs 17.86 crore in same period last year. Revenue during the same period jumped to Rs 100.03 crore from Rs 55.18 crore.
8. Key RisksThe company generates a significant amount of its revenues from a limited number of key customers. Any loss of a key customer or reduction demand for products and services from its customers may adversely affect business and financial condition.
Inability to protect its intellectual property or any third-party claims in relation to infringement of intellectual property rights (IPR) in the future could adversely affect their business, reputation and cash flows.
There have been certain instances of lapses on account of inadvertent factual errors, including with respect to certain regulatory filings for corporate actions taken by the company in the past.
9. Promoters and ManagementRakesh Kumar Verma is the Chairman and Managing Director of the company. He co-founded it along with Rashmi Verma in 1995.
Verma is the Whole-time Director and the CEO of the company.
Rakhi Prasad is the Non-executive Director and Sonika Chandra is the Additional Non-executive (Nominee) Director of the company.
Shambhu Singh, Anil Mahajan, Kartheepan Madasamy and Tina Trikha are the Independent Directors of the company.
Key Managerial Personnel
Anuj Kumar Jain is the Chief Financial Office, Saurabh Surendra Somani is the Company Secretary and Compliance Officer and Rashmi Verma is the co-founder and chief technology officer of the company.
10. GMP, Listing and Allotment DateThe grey market premium for the IPO is currently at Rs 650 per share as per IPO watch.
The share allotment will get finalised by December 16 and the unsuccessful investors will get refunds in their bank accounts by December 17, while successful investors will get shares in their demat accounts by December 20.
The trading in equity shares on the BSE and NSE will start on December 21.
