MapMyIndia’s bumper listing; stock opens at 53% premium over IPO price

CE Info Systems Ltd, owner and operator of online portal MapMyIndia made a stellar debut on stock exchanges on TUesday as the stock saw bumper listing at 53% premium over IPO price of Rs 1033 per share. The share was trading at Rs 1581 on open, up Rs 548 from the issue price.

MapMyIndia listing
The Rs 1,039.61-crore MapMyIndia IPO received stellar response from investors as the offer was subscribed 154.71 times with support from all kind of investors. (REUTERS)

CE Info Systems Ltd, owner and operator of online portal MapMyIndia made a stellar debut on stock exchanges on Tuesday as the stock saw bumper listing at 53% premium over IPO price of Rs 1033 per share. On BSE, MapMyIndia shares were trading at Rs 1,581 on open, up Rs 548 from the issue price. On the National Stock Exchange (NSE), the counter listed at Rs 1,565, up 51%. The IPO of MapmyIndia, a company which offers proprietary digital maps as a service (MaaS), software as a service (SaaS) and platform as a service (PaaS), was open for subscription from December 9-13. The company fixed the price band in the range of Rs 1,000-1,033 per share.

The Rs 1,039.61-crore IPO received enthusiastic response from investors as the offer was subscribed 154.71 times with support from all kinds of investors. Non-institutional investors bought shares 424.69 times the portion set aside for them, the qualified institutional buyers’ portion was booked 196.36 times, while the reserved portion for retail investors was subscribed 15.20 times. The company has raised Rs 1,039.6 crore through its IPO which was a complete offer for sale (OFS) by selling shareholders including Rashmi Verma, Qualcomm Asia Pacific Pte Ltd and Zenrin Co.

“Financially, the company is doing well and its business model is sustainable. In spite of the fact that the IPO was purely OFS based, it attracted investors and got subscribed 154 times. The new edge technologies, such as SaaS, PaaS, and MaaS platform providers, are poised to have a bright future. The IPO got listed at Rs 1,581 per share, which is a 53% premium over the issue price of Rs 1,033. Investors who applied for the IPO’s listing gain should put a stop loss of 1,480 and long-term investors who got allotments should continue to hold the stock. New investors can also look for buying in the dips,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

“We witnessed a stellar listing of MapmyIndia with ~53% gain today. Post listing some profit booking is seen in the stock. We have a positive view on the stock as the company has unique business with no listed peers, decent financials with no debt and strong growth prospects. The company has a strong business model, experienced management and strong presence in multiple areas. Some of their customers include PhonePe, Yulu, Airtel, HDFC Bank, Hyundai, GSTN etc. We advise investors to hold this stock for long term and new investors can also add this stock in dips. We believe 1250—1300 range can be an attractive buy in MapmyIndia”, said Mohit Nigam, Head – PMS, Hem Securities.

MapMyIndia is a unique company that has entered exchanges, it has no listed peers. The company’s major products include digital maps, geospatial maps, IoT enabled location services. One may Hold the company in their portfolio considering the advancement in map technologies, it can be a good long term bet with technologies like IoT, Drone technology,location-enabled services growing up, said Manoj Dalmia, Founder and Director, Proficient Equities.

We assigned subscribe rating to CE Info system public issue considering the optimistic business outlook of the company. Since the company present in Indian geospatial market for over 25 years, Map my India has earned market leadership position in geospatial industry and has built a strong moat by capitalizing early mover advantage, developing proprietary and integrated technologies. Considering the industry tailwinds, strong market position with high entry barriers to business, we expect robust business growth going forward while health margin profile to keep profitability trajectory upbeat as well. As the issue listed over 40% premium and considering the current market situation, we advise short term investor to book profit while long term investors can remain invested in the stock, said Satish Kumar, Research Analyst, Choice Broking.

MapmyIndia is India’s leading provider of advanced digital maps, geospatial software and location-based IoT technologies with clientele orders of 500 including PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, and Goods and Service Tax Network.

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