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MapmyIndia IPO GMP, Financials, Strength, Subscription on Day 1. Should you Buy?

MapmyIndia IPO will be open for subscription from December 9-13

MapmyIndia IPO will be open for subscription from December 9-13

MapmyIndia IPO opens for subscription today and has seen massive response from retail investors. Know MapmyIndia IPO valuation, financials and analysts' recommendations before buying

MapmyIndia, one of the leading providers of digital maps and geospatial software and location based on IoT technologies, owner CE Info Systems opened its initial public offering (IPO) on Thursday. MapmyIndia saw an overwhelming response from the investors on the first day. MapmyIndia IPO received bids for 1,42,31,406 shares against the issue size of 37,17,938 shares. The portion set aside for retail investors was booked 1.8 times.

If you are planning to invest in MapmyIndia IPO, here are the key details to know

MapmyIndia IPO Price, Dates

MapmyIndia IPO will be open for subscription from December 9-13. The company has fixed price band at Rs 1,000–1,033 per equity share of face value of Rs 2 each.

MapmyIndia IPO Offer Details:

CE Info Systems aims to raise Rs 1,039.6 crore from its maiden offer. MapmyIndia IPO consists entirely Offer for Sale (OFS) from promoters and other investors. The company will not receive any funds from IPO as all the money will go to selling shareholders.

Rashmi Verma, individual selling shareholder will sell 42,51,044 equity shares, while Qualcomm Asia Pacific Pte Ltd will offload 27,01,407 equity shares, and Zenrin Co Ltd will sell 13,69,961 equity shares. The remaining 17,41,533 equity shares will be sold by several other shareholders. Investors PhonePe India, Zenrin, and Qualcomm held 19.15 per cent, 8.78 per cent, and 5.07 per cent shareholding, respectively, in the company.

The promoter shareholding will come down to 53.73 percent after the issue from 61.71 percent now.

MapmyIndia IPO Objective:

The company aimed to offload 10,063,945 equity shares and achieve the benefits of listing the equity shares on the stock exchanges.

MapmyIndia IPO Bidding Details for Investors:

Investors can bid for a minimum of 14 equity shares and in multiples of 14 equity shares thereafter. Retail investors can invest a minimum of Rs 14,462 for one lot, and their maximum investment would be Rs 1,88,006 for 13 lots.

MapmyIndia IPO Valuation:

The IPO is valued at 36.1x FY21 price-to-sales and 28x FY22 annualized price-to-sales, which is largely in line with ~27x to PayTM and 32x to Zomato (at CMP). While consumer-based apps like Google Maps are free, API and enterprise-based solutions are paid services. The company has an edge due to its maps being more accurate compared to peers.

MapmyIndia IPO GMP

The unlisted shares of MapmyIndia saw high premium in the grey market on Thursday December 9. The grey market premium of MapmyIndia rose to 800 on December 9, according to IPO Watch. High grey market premium indicates strong listing of the IPO in the market.

MapmyIndia IPO: Key Strength

C.E. Info Systems, the owner of MapmyIndia is India’s leading provider of advanced digital maps, geospatial software. It is a leader in the B2B and B2B2C market, serving over 500 enterprise customers across three 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 per cent of India’s road network) has created strong entry barriers for the company,” said Motilal Oswal in a note.

MapmyIndia IPO: Should you Subscribe?

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 EV/Sales, which although expensive is similar to other Indian unicorns. We 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.

“With Covid-19 situation normalising and , looking at good order book, we expect, conversion of these orders will happen going ahead. With this in H1FY22, company recorded a growth of 81.3 per cent year-on-year and revenue
came at Rs 100.3 crore. Going ahead, the company will be able to leverage its leadership position in India and with expansion in different country, acquisition of new customers and with cross sell and upsell opportunity to existing customers, we feel, the company has the potential to show good growth ahead. Since most of its products, platforms and solutions are digital, created in-house, and then deployed and delivered over the cloud, the company has high operating leverage with relatively low variable cost and high fixed cost which will enables company to grow profitability faster than revenue growth. The same is
visible in H1FY22 wherein Ebitda margin stood at 45.2 per cent, indicating higher sales is leading to high profitability to the company. Company is debt free and OCF for the company stands at Rs 83.2 crore in FY21 indicating lower working capital requirement by the company. ROE for FY21 stands at 16.6 per cent. At the given upper price band of issue of Rs 1033, C.E. Infosystem is offered at PE of 58.8x annualized H1FY22 EPS which we feel is attractive. We recommend subscribing to the issue,” Nirmal Bang said in a note.

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first published:December 09, 2021, 18:20 IST