MapmyIndia IPO | Healthy subscription to its IPO and robust financials supported the stock price today.
CE Info Systems, popular for its brand MapmyIndia, made a strong debut on the exchanges on December 21, despite the volatility in the equity market, listing with a premium of 53 per cent.
The stock opened at Rs 1,581 on the BSE against the issue price of Rs 1,033 per share, while the opening price on the National Stock Exchange was Rs 1,565.
Good subscription to its IPO and strong financial position supported the share price today.
The Initial Public Offering of MapmyIndia witnessed strong investor demand as the offer was subscribed 154.71 times during 9-13 December. Non-institutional investors bid 424.69 times the share reserved for them, and qualified institutional buyers were booked 196.36 times the allotted quota, while the portion set aside for retail investors saw subscriptions 15.20 times.
All analysts recommended subscribing to the issue given its strong financial position, leadership in digital mapping, strong data governance and marquee customers across all sectors.
“We like that MapMyIndia has given its leadership in digital mapping, strong entry barriers, strong profitable data and technology platform as well as consistent financials. The issue is valued at 27x 1HFY22 annual enterprise value/sales, which is higher than other Indian As expensive as unicorns," said Motilal Oswal.
He believes that MapmyIndia is well positioned to tap the high-growth digital mapping market. "High-risk investors looking to fancy a unique and first-of-its-kind listing can subscribe for listing benefits," the brokerage said.
The company has raised Rs 1,039.6 crore through its public issue. The price band of the offer was Rs 1,000-1,033 per share.
MapmyIndia is a data and technology product and platform company, offering proprietary Digital Maps as a Service (MaaS), Software as a Service (SaaS) and Platform as a Service (PaaS). It provides products, platforms, application programming interfaces (APIs) and solutions in a range of digital map data, software and IoT for the Indian market under the (MapmyIndia) brand and for the international market under the (Maple) brand.
Hem Securities said, "The company is the B2B and B2B2C market leader in India with a comprehensive suite of SaaS, PaaS and MaaS offerings."
The company also has marquee customers in areas with strong relationships and the ability to up-sell and cross-sell. “It has a profitable business model with consistent financial track record, high operating leverage and strong cash flow,” the brokerage said, adding that listing benefits and recommends to ‘subscribe’ to the issue for the long term.
MapmyIndia registered a significant increase in profit to Rs 59.43 crore in FY 2011 as compared to Rs 23.19 crore in the previous year. The revenue during the same period increased from Rs 148.63 crore to Rs 152.46 crore.
Profit also rose sharply to Rs 46.76 crore for the six-month period ended September 2021 from Rs 17.86 crore in the corresponding period of the previous fiscal. The revenue during the period April-September 2021 increased to Rs 100.03 crore as against Rs 55.18 crore in the same period of the previous fiscal.
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