MapmyIndia IPO: The IPO, or IPO, of CE Info Systems, which is known for its MapmyIndia brand, continued to receive strong investor demand on its second bidding day on December 10, Friday. According to BSE data, the issue was cumulatively subscribed to 3.04 times its total size at the time of writing this article. At 12:35 AM, investors had booked 2.14 crore shares against the shares’ IPO size of 70.44 lakh, data showed. Retail individuals remained the main category to endorse the issue, with an overwhelming response. The MapmyIndia IPO will close on Monday, December 13 after three days of bidding.
Retail buyers booked 4.74 times the share reserved for them in CE Info Systems’ IPO, while non-institutional buyers bought 1.65 times the shares reserved for them. Qualified institutional buyers bid for 1.11 times the shares reserved for the class.
CE Info Systems, a leading company in data and technology products and platforms, opened its IPO on Thursday, December 9, and received overwhelming response from bidders. The company plans to mop up Rs 1,039.60 crore through its first public issuance. The MapmyIndia IPO has already raised h Rs 312 crore from its anchor investors.
CE Info Systems has a fixed price band of Rs 1,000-1,033 per share with a par value of Rs 2 each. The entire offering is an Offer For Sale (OFS) from promoters and other investors. This means that the company will not receive any proceeds from its public offering, as it will all go to the selling shareholders.
Rashmi Verma, individual selling shareholder, will sell 42,51,044 shares, while Qualcomm Asia Pacific Pte Ltd will sell 27,01,407 shares and Zenrin Co Ltd will sell 13,69,961 shares. The remaining 17,41,533 shares will be sold by various other shareholders. Investors PhonePe India, Zenrin and Qualcomm held 19.15 percent, 8.78 percent and 5.07 percent shares in the company, respectively.
CE Infosystems, or MapmyIndia IPO, plans to sell 10,063,945 shares and reap the benefits of listing the shares on the exchanges through the IPO.
The unlisted shares of MapmyIndia IPO took a premium of Rs 900 on day 2 of the gray market bidding. This was more than 87 percent higher than at the top end of the Rs 1,033 price range. The high GMP of MapmyIndia IPO signaled a strong listing in the equity 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”). Founded 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 high end of the IPO price band at 58.8x its annual profit in FY22 attributable to post-issuance equity and claims a market cap of Rs 55,000 million. At the high end of the IPO price band, the issue is priced at a P/BV of 13.54x based on the NAV of Rs 76.28 as of September 30, 2021. CE Info Systems has an average RoNW of 12.86 percent for the last three years. This forced most of the brokers to give a positive rating to the MapmyIndia IPO.
“MapmyIndia is all set to capitalize on the exponential growth opportunity as a market leader. It also has an early mover advantage and a profitable business model with a consistent financial track record and strong cash flows. However, the rating seems to be marginally rich, so we recommend a “Subscribe-Long”
Term” rating for this IPO,” said Anand Rathi’s research team.
“Given the company’s leadership position in India, customer base and benefits of the network effect, healthy margins and return profile, as well as strong cash conversion, we recommend SUBSCRIBE to this issue from a long-term perspective,” said Angel Broking.
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