The public issue of CE Info Systems, which runs MapmyIndia, continued to get healthy response from investors with bids for 108.98 crore equity shares against an offer size of 70.44 lakh units, subscribing 154.71 times on the final day of bidding.
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 India’s leading provider of advanced digital maps, geospatial software and location-based IoT technologies.
Retail investors have bought shares 15.20 times the allotted quota, and the portion set aside for non-institutional investors was subscribed 424.69 times. Qualified institutional buyers have put in bids 196.36 times the reserved portion.
The Rs 1,040-crore public issue was subscribed 2.02 times on its first day of bidding, and the second day subscription was 6.16 times.
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The offer launched by the company on December 9 is entirely an offer for sale. So the company will not get any funds from the offer.
The price band for the offer, which closes on December 13, is Rs 1,000-1,033 per equity share.
Also read - MapmyIndia IPO: Grey market premium indicates strong demand for issue
“The company is available at the upper end of the IPO price band at 58.8x its annualised FY22 earnings attributable to post-issue equity, demanding a market cap of Rs 5,500 crore. At the upper end of the IPO price band, the issue is priced at a P/BV (price-to-book value) of 13.54x based on its NAV of Rs 76.28 as of September 30. The company has an average return on net worth at 12.86 percent for the last three years,” said Anand Rathi.
The Indian addressable market of digital maps and location-based intelligence services is expected to reach $7.74 billion by 2025 at a six-year average growth rate of 15.5 percent a year.
Also read - MapmyIndia IPO: 10 key things you must know before subscribing the issue
“MapmyIndia is all set to capitalise the exponential growth opportunity being the market leader. It also has an early mover advantage and a profitable business model with consistent financial track record and strong cash flows. However, the valuation seems to be marginally rich, hence, we recommend a ‘subscribe-long term’ rating to this IPO,” said Anand Rathi.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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