MapmyIndia to come out with its maiden IPO this week

MapmyIndia to come out with its maiden IPO this week In this week, many companies are bringing their IPOs namely Rakesh Jhunjhunwala-backed Metro Brands, Rate Gain Travel Technologies, Shriram Properties and CE Info Systems (MapmyIndia). We have discussed about Metro Brands and Rate Gain Travel, Shriram Properties IPOs in our previous articles. In this Article, we will discuss about MapmyIndia IPO.

MapmyIndia:

Founded in 1992, MapmyIndia is a data and technology products and platforms company, offering proprietary digital maps as a service, software as a service and platform as a service. The New Delhi based-company is also knows as CE Info Systems and backed by global wireless technologies company Qualcomm and Japanese digital mapping Zenrin. Apple products use MapmyIndia maps as do payment gateways like PayTm, PhonePe, or e-commerce food delivery platforms like McDonalds, Grofers, Cars24. Companies like SBI, Bajaj Finserv and various DTH dealers use the maps by the company for store locators. ISRO has also been assisted by the company previously. Flipkart, HDFC Bank, Yulu, Hyundai, Airtel, Avis, Apple, MG Motor, Goods and Service Tax Network (GSTN) and Safexpress are also among it’s customers.

When:

The maiden initial public offering of the Digital mapping company will come out on 9^th of December this week which will conclude after four days i.e. 13^th of December.

• Offer for sale: Rs 1040 crore.
• Price band: Rs 1,000–1,033 per equity share.
• Market value at the upper end of the price band: ₹1,039.6 crore
• Face value: Rs 2 apiece.
• Lot size: 14 shares and multiples.
• Listing: NSE and BSE.
• Lead managers: Axis Capital, JM Financial, Kotak Mahindra Capital Company, and DAM Capital Advisors.
• Promoters:

At present, individual selling shareholder Rakesh Kumar Verma and Rashmi Varma are the promoters of the company who hold 28.65% and 35.88% of stakes in the company respectively. 50% of the issue size has been set aside for qualified institutional buyers (QIBs), 35 per cent for retail investors, and 15 per cent for non-institutional investors. The company has recorded profit of Rs 59.43 crore in the financial year 2020-21, which was Rs 23.19 crore in the previous fiscal year. Revenue during the same period rose to Rs 152.46 crore from Rs 148.63 crores. Looking at the profits posted, it can be said that the performances of the company across the financial year has been averagely good but the future looks promising. However, based on the market comparison and other financial parameters, the IPO seems aggressively priced. Hence, investors who want to play long term should subscribe to the issues who have cash surplus or the heart to take risks.