The initial public offering (IPO) of MapmyIndia with a price range of ₹1,000-1,033 per share, opened for public subscription today and the three-day issue will close on December 13. The digital mapping company said on Wednesday it had taken action ₹312 crore from core investors before its initial stock sale.
On Day 1, MapmyIndia’s IPO was oversubscribed 2 times with retail portion overbooked 3.28 times, according to BSE data.
The IPO is entirely an offer for sale of up to 10,063,945 shares by existing shareholders and the promoter. The public issue should yield ₹1,039.6 crore at the upper end of the price range.
According to market watchers, the MapmyIndia (GMP) stock premium jumped to ₹1,010 on the gray market today. The company’s shares are expected to go public on December 21, 2021.
“MapmyIndia is poised to take advantage of the exponential growth opportunity as a market leader. It also has a first mover advantage and a profitable business model with a consistent financial track record and strong cash flow. However, the valuation looks to be marginally wealthy, that’s why we recommend a ‘Long Term Subscription’ rating to this IPO,” Anand Rathi said in a note.
CE Info Systems Ltd, popularly known by its MapmyIndia brand, is backed by global wireless technology company Qualcomm and Japanese digital mapping company Zenrin. MapmyIndia is a leading provider of advanced digital maps, geospatial software and location-based IoT technologies.
Given the company’s leading position in India, customer base and network effect advantages, healthy margins and yield profile as well as strong cash conversion, Angel One employees also recommend subscribing on the issue from a long-term perspective.
The company’s data powers Apple Inc.’s Maps and Amazon.com Inc.’s voice assistant Alexa. The company’s customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network (GSTN).
“Mapmyindia is on the verge of listing at a good listing premium. We suggest that investors continue to profit from these listing gains. The company will need to justify these valuation premiums with strong growth in the figure revenue and net income over the next few quarters, which seems hard to watch. There are better opportunities to reallocate capital after the recent correction in the broader markets,” said Divam Sharma, co-founder of Green Portfolio.
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