The public offer of CE Info Systems, popularly known for its brand MapmyIndia, continued to see strong demand from investors as it has subscribed 6.16 times, getting bids for 4.33 crore equity shares against the IPO size of 70.44 lakh equity shares on December 10, the second day of bidding.
Retail investors remained at the forefront to support the issue, putting in bids 7.17 times the portion set aside for them, and that of non-institutional investors saw 6.27 times subscription.
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Qualified institutional investors bought shares 4.32 times their reserved portion. Half of the offer size is reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
MapmyIndia, India's leading provider of advanced digital maps, geospatial software and location based IoT technologies, is looking to raise Rs 1,039.60 crore through its public issue, of which Rs 312 crore has already been raised from anchor investors.
Also read - MapmyIndia IPO: 10 key things you must know
It is entirely an offer for sale, hence 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.
"We like MapmyIndia given its leadership in digital mapping, strong entry barriers, robust profitable data and tech platform along with consistent financials. The issue is valued at 27x 1HFY22 annualized enterprise value/Sales, which although expensive is similar to other Indian unicorns," said Motilal Oswal.
Also read - MapmyIndia IPO: Attractive business with a solid growth map
The brokerage believes MapmyIndia is rightly placed to tap the high growth digital mapping market. "Investors with high risk appetite can subscribe for listing gains given the fancy for a unique and first of its kind listing," said the brokerage.
MapmyIndia is a leader in the B2B and B2B2C market, serving over 500 enterprise customers across 3 major categories - corporate, automotive and government. Some of the marquee names include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, Avis, Safexpress, GST Network, etc.
Given its early mover advantage and continuous innovation, MapmyIndia has been able to build a proprietary end-to-end technology driven and AI-assisted mapping systems, that is difficult to replicate. This along with large network effect (covers 98.5% of India’s road network) has created strong entry barriers for the company, said Motilal Oswal.
Also read - MapmyIndia IPO. Should You Subscribe To It?
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