MapmyIndia IPO- C.E. Info System is going for a public offer on Dec 9

MapmyIndia IPO Analysis

MapmyIndia IPO will start on 9 December and end on 13 December. The C.E. Info System managed by MapmyIndia will conduct the first public offering of 1 billion shares at a price range of Rs 1000-1033 per share. In the following, I will provide all the details of the IPO. With that, I will try to talk about the company’s business model, financial indicators, strengths, and weaknesses that you need to know before investing in this IPO.

About the brand

MapmyIndia is one of the leading providers of advanced digital maps. And also geospatial software and location-based IoT technologies in India. The data and technology product company offers MaaS, SaaS, and PaaS. The company provides products, platforms, application programming interfaces (APIs), and solutions for various digital map data, software, and IoT for Indian brands (MapmyIndia) and international branded markets (Mappls).

The company serves various sectors like BFSI, telecommunications, FMCG, industrial, logistics, and transportation. MapymyIndia has also signed various letters of intent with key government organizations such as the Indian Space Research Organization (ISRO), NITI Aayog, National e-Government Department, DEIT, and the Government of India. MapmyIndia provides services to prestigious customers like HDFC Bank, Airtel, PhonePe, Flipkart, Yulu, and Hyundai. Subscription fees, license fees, and annuity payments combined account for more than 90% of the company’s revenue in fiscal 2021.

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MapmyIndia offers over 6.29 million kilometers of roads in India. How much is it? almost 98.50% of India’s road network. The company’s digital map data provides location, navigation, analysis, and other information for 7,933 cities, 6,337,472 villages, 17.79 million locations in categories such as restaurants, shops, malls, ATMs, hotels, police stations, electric vehicle charging stations, etc. and 14.51 million home or building addresses.

MapmyIndia Financials

MapmyIndia has increased its assets with time. Although you may see the revenue didn’t change much due to their growing operational strategy, but the Profit After Tax (PAT) has increased 594 million in Mar 2020 from 335 million in Mar 2019.

30th Sep 2131st Mar 2131st Mar 2031st Mar 19
Total Assets4,659.584,268.563578.263392.59
Total Revenue1225.791922.741634.781633.35
PAT467.66594.33231.95335.66
Above mentioned figures are in millions

CE Info Systems posted a profit of Rs 59.43 million for the 2020-21 fiscal year, up from Rs 23.19 billion in the previous fiscal year. Sales increased from Rs 148.63 to Rs 152.46 during the same period.

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Qualcomm to book 20X returns

13 years ago Qualcomm first invested in MapmyIndia. The company left its entire 5% stake in MapmyIndia. At that time Qualcomm invested at 52Rs per share which means a return of nearly 20 times from the buying price.
Japanese map company Zenrin will only sell about a third of its 9 percent stake in MapMyIndia.
After the IPO, MapmyIndia will remain majority-owned by the founders Rakesh Verma and Rashmi Verma. Although Rashmi Verma will sell over 42L equity shares. They will still hold approximately 53 percent of the company’s shares.

MapmyIndia’s Strengths

  • Firstly, as investors, we look for past profits the company has made and MapmyIndia has a consistently profitable financial track record.
  • It has an early advantage in India in digital maps.
  • The company has its own technology and network effects. And that leads to a competitive advantage
  • Market leader in B2B and B2C for digital maps and location intelligence in India.
  • Independent global geospatial product and platform company with robust data management.
  • The brand has set various examples as famous customers in various industries have connected with the brand.

Weaknesses-

The company’s biggest weakness is, it is competing with the Giant “Google Maps”. Still, 70-80 percent of you who are reading this, till now using Google maps. Major delivery companies are also using the same. Though with time major players have connected with MapmyIndia, it has to fight hard every day to beat the giant.

MapmyIndia has been more friendly for the small to medium to large businesses, suppose you are a restaurant owner, most likely you would likely use MapmyIndia. But for most individuals still, Google maps is 1st choice, something that the company has to think about over time on how to beat this market as well.

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MapmyIndia IPO Details-

IPO Opening DateDec 9, 2021
IPO Closing DateDec 13, 2021
Issue TypeBook Built Issue IPO
Face Value₹2 per equity share
IPO Price₹1000 to ₹1033 per equity share
Market Lot14 Shares
Min Order Quantity14 Shares
Listing AtBSE, NSE
Basis of Allotment DateDec 16, 2021
Initiation of RefundsDec 17, 2021
The credit of Shares to Demat AccountDec 20, 2021
IPO Listing DateDec 21, 2021
Minimum 1 Lot or 14 shares₹14,462
Maximum 13 Lots or 182 share₹188,006
IPO details as per the announcement

Get more info on NSE

Conclusion

I hope above all the pieces of information will help you to decide whether this is your cup of cake or not. Let me know if you have any doubt regarding this in the comment section or in the social media handle. Good luck!!