MapmyIndia IPO: All You Need To Know
MapmyIndia, officially CE Info Systems Ltd., will sell shares at Rs 1,000-1,033 apiece in its three-day initial public issue starting Thursday.
The Rs 1,039.60-crore IPO is a pure offer for sale by promoters and selling investors, the digital map provider said in its red herring prospectus. The company is valued at Rs 5,500 crore at the upper end of the price band.
The maiden offer constitutes 18.9% of the post-issue equity of the company, with promoters holding 53.7% after the share sale.
Goldman Sachs Group Inc. and Morgan Stanley are among institutional investors bidding to participate in the IPO, Bloomberg reported citing people familiar with the matter.
Face value: Rs 2 apiece.
Lot size: 15 shares and multiples.
Listing: NSE and BSE.
Lead managers: Axis Capital, JM Financial, Kotak Investment Banking, DAM Capital.
Where Will The Money Go?
The offer-for-sale proceeds will go to the promoter and investors offering shares in the issue, and not to the company.
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The company provides advanced digital maps, geospatial software and location-based internet of things technologies.
It also provides products, platforms, application programming interfaces and solutions across a range of digital map data, software and IoT under MapmyIndia and Mappls brands to marquee global tech giants, new-age consumer IT companies, leading automotive manufacturers, large businesses across industry segments including banking, financial services and insurance, telecom, fast-moving consumer goods, logistics and key government organisations.
Its customer base includes PhonePe, Flipkart, Yulu, HDFC Bank, Bharti Airtel, Hyundai, MG Motors, Avis Car Rental, Safexpress and the Indian government’s Goods and Services Tax Network.
Over 93% of the company’s revenue comes from subscription, annuity and royalties.
It derives more than 50% of its revenue from the automotive and mobility sector. Enterprise or consumer business forms the rest.
Its two key products are:
Maps and data
Platform and IoT
CE Info Systems derives more than half of its revenue from clients outside India. It’s now looking to expand into Nepal, Bhutan, Bangladesh, Sri Lanka, Myanmar, the U.A.E. and Egypt.
In the first half of FY22, 18 customers accounted for 80% of its revenue. In FY21, 25 customers accounted for 80% of revenue.
CE Info Systems has reported profits in the last three fiscals and the first half of the current fiscal. The growth was driven by consumer and enterprise segments.
CE Info Systems has no listed peers in India.
It has a regulatory advantage and, as a result, limited competition from global peers. Recent geospatial regulations pose a challenge for foreign firms such as TomTom, HERE Technologies, Mapbox, ESRI, Trimble and Google Maps as they are required to partner local peers via licensing their APIs for restricted data, which is not permitted to pass directly through their servers.
The company is dependent on trends in the sectors where its enterprise customers (auto, mobile, consumer, logistics) operate.
Its business is dependent on the performance of the automotive sector, including in India—its key market. Any adverse changes in conditions affecting the sector can adversely impact business.
Inability to maintain or update map database or errors in its map database could harm its reputation or adversely affect its ability to sell its products and services.
Inability to protect intellectual property or any third-party claims in relation to infringement of intellectual property rights in the future could adversely affect business and cash flows.
The liberalisation of the digital mapping industry may increase competition and its inability to compete effectively could result in the loss of customers and market share.
The company depends on a limited number of customers for a significant portion of its revenue.