MapMyIndia parent C. E. Info Systems shares tumbled three percent on the bourses after the company decided to segregate its B2C (consumer-tech) aspirations from its core (B2B/B2B2C) business.
MapMyIndia is set to sharpen its focus on its core B2B and B2B2C operations, with plans to spin off its B2C business into a new company led by current CEO Rohan Verma. The company will invest Rs 10 lakh to acquire a 10 percent stake in the new venture and an additional Rs 35 crore through Compulsorily Convertible Debentures (CCDs).
Rohan Verma will step down as CEO on March 31, 2025, but will continue on the board as a Non-Executive Director.
At 12 noon, shares of C. E. Info Systems were trading at Rs 1,698.75 per share, lower by 3.06 percent on the NSE.
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Meanwhile, MapMyIndia has also made two smaller investments to strengthen its B2B capabilities: Rs 3 crore for a 9.37 percent stake in SimDaas Autonomy, which focuses on autonomous systems and ADAS, and Rs 2 crore for a 19.84 percent stake in Kaiinos Geospatial Tech, a provider of GIS solutions.
"MapMyIndia’s investments in B2C segment (Mappls) was impacting margins, while diverting capital from B2B initiatives – IoT-led and Drone businesses. Hiving off B2C efforts should therefore help the company sharpen its focus on B2B/B2B2C segments. The new entity could explore external fund raise, limiting investment requirements from the parent. This should improve MapMyIndia’s margin/ROCE profile," said domestic brokerage JM Financial.
The brokerage said the long-term potential for the firm remains unchanged and any correction on back of this is an opportunity to buy. It issued a target price of Rs 2,810 per share, with an upside of around 60 percent.
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