MapmyIndia IPO: The initial public offering, or IPO, of C.E. Info Systems, which is known for its brand MapmyIndia, continued to receive strong demand from investors on its second day of bidding on December 10, Friday. The issue was cumulatively subscribed 3.04 times against its total size at the time of writing this article, according to BSE data. As of 12:35pm, investors had booked 2.14 crore equity shares against the IPO size of 70.44 lakh equity shares, data showed. Retail individuals remained as the main category to subscribe the issue, expressing an overwhelming response. The MapmyIndia IPO is set to close after three days of bidding on Monday, December 13.
Retail buyers booked 4.74 times the portion reserved for them in the CE Info Systems IPO, while non institutional buyers bought 1.65 times the shares reserved for them. Qualified institutional buyers put in bids for 1.11 times the shares set aside for the category.
CE Info Systems, a leading data and technology products and platforms company, opened its IPO on Thursday, December 9, an had received overwhelming response from bidders then. The company is planning to mop up Rs 1,039.60 crore through its maiden public issue. The MapmyIndia IPO has already raised h Rs 312 crore from its anchor investors.
CE Info Systems has fixed price band at Rs 1,000–1,033 per equity share of face value of Rs 2 each. The entire offer is an Offer For sale (OFS) from promoters and other investors. This means that the company will not receive any proceeds from its public issue as all of it 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.
CE Infosystems, or MapmyIndia IPO, intends to offload 10,063,945 equity shares and achieve the benefits of listing the equity shares on the stock exchanges through the IPO.
The unlisted shares of MapmyIndia IPO were fetching a premium of Rs 900 on Day 2 of bidding at the grey market. This was up by over 87 per cent against the upper end of the price band of Rs 1,033. The high GMP of MapmyIndia IPO indicated a strong listing at the stock markets later this month.
CE Info Systems is a leading company offering proprietary digital maps as a service (“MaaS”), software as a service (“SaaS”) and platform as a service (“PaaS”). Established in 1995, the company is India’s leading provider of advanced digital maps, geospatial software and location-based IoT technologies.
The company is available at the upper end of the IPO price band at 58.8x its annualised FY22 earnings attributable to post issue equity, demanding a market cap of Rs 55,000 million. At the upper end of the IPO price band, the issue is priced at a P/BV of 13.54x based on its NAV of Rs 76.28 as of September 30, 2021. CE Info Systems has an average RoNW at 12.86 per cent for last three years. This compelled most brokerages to give positive rating to the MapmyIndia IPO.
“MapmyIndia is all set to capitalize the exponential growth opportunity being the market leader. It also has an early mover advantage and a profitable business model with consistent financial track record and strong cash flows. However the valuation seems to be marginally rich, hence we recommend a “Subscribe-Long
Term” rating to this IPO,” said the Anand Rathi research team.
“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, we recommend SUBSCRIBE on the issue from a long-term perspective,” said Angel Broking.
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