MapmyIndia files IPO papers with SEBI; issue entirely an offer-for-sale

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Updated: September 01, 2021 12:02 PM

MapmyIndia has filed a draft red herring prospectus (DRHP) with capital market regulator SEBI, to launch an IPO.

mapmyindia IPO, MapmyIndiaMapmyIndia has partnered with the Indian government and has been in the market for over 25 years

MapmyIndia has filed a draft red herring prospectus (DRHP) with capital market regulator SEBI, to launch an IPO. The public issue is entirely an offer-for-sale (OFS) of up to 75.47 lakh shares by selling shareholders. The OFS comprises sale of up to 30.70 lakh equity shares by Rashmi Verma, up to 20.26 lakh equity shares by Qualcomm Asia Pacific Pte Ltd and up to 10.27 lakh equity shares by Zenrin Co Ltd. MapMyIndia, also known as CE Info Systems, is backed by global wireless technologies company Qualcomm and Japanese digital mapping Zenrin.

Axis Capital, JM Financial, Kotak Mahindra Capital and DAM Capital Advisors are the lead managers to the issue. Link Intime India Private Ltd is the registrar to the issue. There are no listed companies in India that engage in a business similar to that of MapmyIndia. The company will not receive any proceeds from the offer and all the offer proceeds will be received by the respective selling shareholders.

MapmyIndia has partnered with the Indian government and has been in the market for over 25 years, also has industry partners like Honda, Apple etc. which are their clients as well as tech partners. Some publicly available deployment details reveal that Apple products use MapmyIndia maps as do payment gateways like Paytm, PhonePe, or e-commerce food delivery platforms like McDonald’s, REBEL Food Eat Sure, Grofers, Cars24. Store locators by companies like SBI Branch Locator, Bajaj Finserv, Single Interface, BFL, Prasar Bharti DTH Dealer locator use the same. Ride-hailing apps like Malbork or web apps like Magic Bricks, 99acres use MapmyIndia too. Customer complaint app of India’s largest phone provider- Airtel. Emergency response apps by Paras Hospital, Cowin, or the GVK EMRI Emergency Ambulance Dispatching. FMCGs like Patanjali Ayurveda or Asian paint and utilities like Tata Power use their products and services too.

MapmyIndia’s business model is primarily to charge customers royalties, subscriptions, and annuities in return for providing licenses and usage rights to its intellectual property-based digital map data, platforms, APIs and software. MapmyIndia has some clear advantages in the context of business in India, that are not easily replicable, putting up high barriers to entry in the map and navigation business in India. In its DRHP, MapmyIndia said that as its products and solutions specifically localised for a challenging geography like India, which has a high level of complexity, dynamic and constantly evolving nature of geographical expanse, also provides MapmyIndia with a base and preparedness to offer robust offerings for the global market as well, having covered challenging geography like India under its belt.

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