The public offer of CE Info Systems, a data and technology products and platforms company, has received bids for 1.42 crore equity shares against IPO size of 70.44 lakh equity shares, subscribing 2.02 times on December 9, the first day of bidding.
It is the 59th initial public offering that opened for subscription in 2021.
Retail investors have bought 3.28 times of their reserved portion, and non-institutional investors have put in bids for 117 percent of shares set aside for them.
Qualified institutional buyers' reserved portion was subscribed 46 percent.
CE Info Systems, which is also widely known as MapmyIndia, is planning to mop up Rs 1,039.60 crore by issuing more than 1 crore equity shares through the IPO at the upper price band of Rs 1,033 per equity share. Anchor investors have already invested Rs 311.88 crore in the company via the anchor book on December 8.
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The issue is entirely an offer-for-sale, hence all the money will go to selling shareholders. The price band for the offer, which will close on December 13, is Rs 1,000-1,033 per equity share.
Considering the company’s leadership position in India, client base and benefits of network effect, healthy margins and return profile as well strong cash conversion, Angel One recommended subscribe on the issue from a long-term perspective.
Also read - Data Patterns IPO opens on December 14
"MapmyIndia being a pioneer, has certain advantages as its digital maps and other solutions are localized for the challenging Indian
geography and are extensive in terms of coverage. There is scope of further up-selling or cross-selling while the maps and platform are constantly updated with validated feedbacks, which can create a network effect," said the brokerage.
Despite the impact of Covid on key customer market (Automobile and Mobility Tech) in FY21, the company was able to post revenue growth of around 3 percent, and the margin profile is strong, which would be supported with scale, the brokerage added.
CE Info Systems is a data and technology products and platforms company, offering proprietary digital maps-as-a-service, software-as-a-service and a platform-as-a-service.
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