Indian digital mapping company CE Info Systems Ltd, which operates under MapmyIndia, got fully subscribed on the first day of its initial public offering (IPO) that closes on 14 December. At 5.30 pm on Thursday, the overall subscription was at 2.02 times. The firm got bids for about 14.23 million shares versus 7.04 million on sale.
Retail investors, whose investments cannot exceed the maximum cap of Rs 2 lakh in an IPO, applied for 3.28 times the shares on offer. The non-institutional category, comprising high net worth individuals, drew 1.17 times the shares reserved for the category. The institutional investors category subscribed 0.46 times; stock exchange data showed.
"We like MapmyIndia given its leadership in digital mapping, strong entry barriers, robust profitable data and tech platform along with consistent financials. The issue is valued at 27x 1HFY22 annualized EV/Sales, which although expensive is similar to other Indian unicorns. We believe MapmyIndia is rightly placed to tap the high growth digital mapping market", said Motilal Oswal in a note to its investors.
The firm on Wednesday raised Rs 311.88 crore from 24 anchor investors. 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.
The IPO comprises a pure offer for sale (OFS) by its existing shareholders and promoters. The firm has increased its OFS size to 10.06 million shares from 7.55 million shares earlier. On the upper price band, the firm plans to raise Rs 1039.61 crore via OFS. Currently, Rakesh Kumar Verma holds 28.65% stake while Rashmi Verma has 35.88% stake in the firm. The company is backed by Qualcomm Inc and Flipkart which currently has 8.58% and 36.56% stake in the firm.
This week, VCCircle reported that its investors Qualcomm Ventures, Flipkart unit PhonePe, and Japanese mapmaker Zenrin, sold a portion of their shares in Mapmyindia to a co-founder for less than one tenth the IPO price.