MapmyIndia IPO: Grey market premium indicates strong demand for issue

The initial public offering (IPO) frenzy in the Indian primary market, it would appear, is not over. C.E. Info Systems, which has mapped 98.5 percent of the country’s roads under its MapmyIndia brand, is one such IPO witnessing robust investor demand.

The price band for the offer has been fixed at Rs 1,000-1,033 per equity share with a face value of Rs 2 each.

The IPO, which opened on December 9, currently commands a premium of Rs 800 per share in the grey market, or a 77 percent premium of the issue price of Rs 1,033 per equity share at the top end of the price band.

Most brokerages have given a “Subscribe” rating for the issue based on its strong fundamentals, profitable business model and growth opportunities.

The public issue will close on December 13 and the allotment of shares will be finalised by December 16. Unsuccessful investors will get refunds by December 17 while successful investors will get shares in their demat accounts by December 20.

The C.E. Info Systems stock will start trading on the BSE and National Stock Exchange from December 21.

The operator of MapmyIndia, the country’s leading provider of advanced digital maps, geospatial software and location-based IoT technologies, had raised Rs 311.88 crore in its anchor book, ahead of its initial share sale, on December 8.

Marquee foreign investors including Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Aberdeen, HSBC and White Oak were allocated equity shares.

Domestic investors including SBI Mutual Fund, HDFC Trustee Company, ICICI Prudential, Aditya Birla Sun Life Trustee, Nippon Life, HDFC Life Insurance, Tata AIA Life Insurance, Tata Mutual Fund, Sundaram Mutual Fund, IDFC Mutual Fund and Edelweiss Trusteeship also participated in the anchor book.

The company allocated 30,19,183 equity shares at Rs 1,033 per share on December 8 (Wednesday) to anchor investors. Out of this allocation, 10,06,395 equity shares were allocated to nine mutual funds through 17 schemes amounting to Rs 104 crore or approximately 33% of the total anchor book.

The public issue is a pure offer for sale of 10,063,945 equity shares by existing shareholders and promoters, comprising up to 4,251,044 equity shares by Rashmi Verma, up to 2,701,407 equity shares by Qualcomm Asia Pacific Pte Ltd, up to 1,369,961 equity shares by Zenrin Co. Ltd and up to 1,741,533 equity shares by other selling shareholders. The company will not receive any proceeds from the offer.

C.E. Info Systems is a data and technology products and platforms company, offering proprietary digital maps as a service, software as a service and platform as a service. It had serviced over 2,000 enterprise customers, including PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network as of September 2021.

It had recorded a profit of Rs 59.43 crore in FY21, up sharply from Rs 23.19 crore in the previous year. Revenue over the same period rose to Rs 152.46 crore from Rs 148.63 crore.

Profit in the six months to September 2021 jumped to Rs 46.76 crore, compared with Rs 17.86 crore in the same period last year. Revenue during the same period jumped to Rs 100.03 crore from Rs 55.18 crore on an annualised basis.