The initial public offer (IPO) of digital mapping company MapmyIndia has opened today. Shares in the IPO are available in a price band of Rs 1,000-1,033. The issue through which the firm plans to collect Rs 1,039.6 crore will close on December 13.
The company, which powers Apple maps, on December 8 collected Rs 312 crore from anchor investors. It allotted 30.19 lakh equity shares to 24 anchor investors at Rs 1,033 apiece, taking the transaction size to Rs 312 crore.
Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Aberdeen and HSBC were allocated equity shares by MapmyIndia into the anchor book.
Shares of the IPO will be allotted to eligible investors on December 16 and the stock is likely to be listed on December 21, 2021. Investors can bid for a minimum of 14 equity shares or one lot by spending Rs 14,462.
A retail-individual investor can apply for up to 13 lots or 182 shares by spending Rs 1,88,006. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for the retail investors.
Axis Capital, JM Financial, Kotak Mahindra Capital and DAM Capital Advisors are the lead managers to the issue.
The objective of the offer is to achieve the benefits of listing the equity shares on the stock exchanges.
The IPO is entirely an offer for sale (OFS) of up to of up to 10,063,945 equity shares by existing shareholders and promoters.
The offer for sale comprises sale of up to 42.51 lakh equity shares by Rashmi Verma, up to 27.01 lakh equity shares by Qualcomm Asia Pacific Pte Ltd and up to 13.7 lakh equity shares by Zenrin Co Ltd. The remaining 17.41 lakh equity shares will be sold by several other shareholders.
C.E. Info Systems Ltd, popularly known through its brand MapmyIndia, is backed by global wireless technologies company Qualcomm and Japanese digital mapping Zenrin. The New Delhi-based company is a leading provider of advanced digital maps, geospatial software and location-based IoT technologies.
Here's a look at what brokerages say about the public issue.
Angel One has assigned a subscribe rating to the IPO.
"Despite the impact of Covid on key customer market (Automobile & Mobility Tech) in FY21, the company was able to post revenue growth of 3% and the margin profile is strong which would be supported with growing scale going ahead. At the upper end of the price band, the company is commanding price to sales multiple of 36x on FY21 revenue and 28x based on TTM Revenues. 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, the brokerage said.
Marwadi Shares and Finance is positive on the prospects of the share sale.
"Considering the TTM (Sept-2021) adjusted EPS of Rs 16.30 on the post-issue basis, the company is going to list at a P/E of 63.37 with a market cap of Rs 55,000 mn. There are no listed companies in India whose business is comparable with that of the company's business. We assign the Subscribe rating to this IPO as the company is one of the leading data and technology products and platform company having a well-known brand MapmyIndia with customers like PhonePe, Hyundai and Flipkart. Also, it is available at a reasonable valuation considering the future growth potential, " the brokerage said.
Anand Rathi has given a subscribe call to the share sale.
"The company being a B2B and B2B2C market leader in India with a comprehensive suite of SaaS, PaaS and MaaS offerings. The total Indian addressable market of digital maps and location based intelligence services is expected to grow to USD 7.74 billion in 2025 at around 15.5% CAGR from 2019 to 2025. MapmyIndia is all set to capitalise 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," the financial services firm said.
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