CE Info Systems, popularly known for its brand MapmyIndia, made a strong debut on the bourses on December 21 despite volatility in the equity market, listing with a premium of 53 percent.
The stock opened at Rs 1,581 on the BSE against the issue price of Rs 1,033 per share, while on the National Stock Exchange, the opening price was Rs 1,565.
Healthy subscription to its IPO and robust financials supported the stock price today.
The initial public offering of MapmyIndia saw tremendous demand from investors as the offer was subscribed 154.71 times during December 9-13. Non-institutional investors had put in bids 424.69 times the portion reserved for them, and the allotted quota of qualified institutional buyers was booked 196.36 times, while the portion set aside for retail investors saw 15.20 times subscription.
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All analysts recommended to subscribe for the issue given its strong financials, leadership in digital mapping, strong data governance and marquee customers across sectors.
"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.
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They believe MapmyIndia is rightly placed to tap the high growth digital mapping market. "Investors with high risk appetite can subscribe for listing gains given fancy for unique and first of its kind listing," said the brokerage.
The company has mobilised Rs 1,039.6 crore through its public issue. The price band for the offer was Rs 1,000-1,033 per share.
MapmyIndia 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 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.
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"The company being a B2B and B2B2C market leader in India with a comprehensive suite of SaaS, PaaS and MaaS offerings is capitalizing on early mover advantage," said Hem Securities.
The company also has marquee customers across sectors with strong relationships and capability to up-sell and cross-sell. "It has a profitable business model with consistent financial track record, high operating leverage and strong cash flows," said the brokerage, recommending 'subscribe' on the issue for both listing gains and for the long term.
MapmyIndia clocked significant growth in profit at Rs 59.43 crore in FY21, compared to Rs 23.19 crore in the previous year. Revenue during the same period increased to Rs 152.46 crore from Rs 148.63 crore.
Profit in the six-month period ended September 2021 also jumped sharply to Rs 46.76 crore from Rs 17.86 crore in the corresponding period last fiscal. Revenue during April-September period 2021 rose to Rs 100.03 crore, compared to Rs 55.18 crore in same period last fiscal.
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