The initial public offering of C.E Info Systems Limited (MapmyIndia), a fast growing SaaS technology company catering to 500 marquee customers across Consumer Tech, Auto OEMs, enterprises across private & public sector, which kicked off for subscription on Thursday, December 09, was subscribed 6.16 times amid strong retail investor interest in the issue.
The offer received bids for 4,33,94,624 shares against the offered 70,44,762 equity shares, as per the 5:00 pm data available on the bourses.
Retail investors had put in bid 7.17 times the shares reserved for them, while the part set aside for non-institutional investors was subscribed 6.27 times. Qualified institutional buyers portion was subscribed 4.32 times. Earlier on the first day, the issue was subscribed 2.02 times on Thursday, December 9, 2021.
The primary offering is entirely an offer for sale (OFS) shares with a face value of Rs 2 each, in which its existing shareholders and promoters are offloading 1,00,63,945 equity shares in the range of Rs 1000 - 1033 each.
The offer for sale includes up to 42,51,044 equity shares by Rashmi Verma, up to 27,01,407 equity shares by Qualcomm Asia Pacific Pte Ltd, up to 13,69,961 equity shares by Zenrin Co. Ltd and up to 17,41,533 equity shares by other shareholders.
Brokerage Houses like Religare Securities, Angel One, Kotak Securities, Hem Securities and Motilal Oswal Financial Services etc. have given recommendations of "Subscribe" rating to the issue.
According to brokerage houses, MapmyIndia being a pioneer has certain advantages as its digital maps and other solutions are localized for the challenging Indian Geography and are extensive in terms of coverage. Despite the impact of Covid on key customer market (Automobile & Mobility Tech) in FY21, the company was able to post revenue growth of ~3% and the margin profile is strong which would be supported with growing scale going ahead. At the upper end of the price band, the company is commanding price to sales multiple of ~36x on FY21 revenue and 28x based on TTM Revenues.
On Wednesday, CE Info Sytems raised Rs 312 crore from 24 anchor investors, who were allotted 30,19,183 equity shares at the upper price band of Rs 1033 per share.
Marquee foreign portfolio investors including Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Aberdeen, HSBC and White Oak were allocated equity shares by MapmyIndia into the anchor book.
Leading domestic mutual funds such as SBI, HDFC, ICICI Prudential, Birla, Nippon, Tata & Sundaram and life insurance companies such as HDFC Life and Tata AIA Life also participated in MapmyIndia's anchor book.
Axis Capital Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited, and DAM Capital Advisors Limited are the book running lead managers to the issue.
CE Info System Limited is country's leading provider of advanced digital maps, geospatial software and location-based internet of things (IoT) technologies. Founded in 1995 and headquartered in New Delhi, India, MapmyIndia pioneered digital mapping in India, and is the B2B & B2B2C market leader for SaaS (Software as a Service), PaaS (Platform as a Service) and MaaS (Maps as a Service) in India. It provides a comprehensive suite of products, platforms, APIs and solutions for automotive & mobility tech, as well as for consumer tech & enterprise digital transformation.
For the financial Year 2021, it reported a profit of Rs 59.4 crore, a 157% rise from Rs 23.1 crore profit it posted in FY20. The company's revenue from operations increased to Rs 152.46 crore in FY21 from Rs 148.63 crore in FY20, primarily due to increase in number of customers and sale of its base platform products.
In February, Indian Space Research Organisation and location and navigation technology solutions provider MapmyIndia announced an initiative to partner together to offer India's best, and fully indigenous, mapping portal and geospatial services.