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MapmyIndia Gets SEBI Nod To Offload 9.58 Mn Shares Via IPO

MapmyIndia Gets SEBI Nod To Offload 9.58 Mn Shares Via IPO

Last month, the company increased its offering by over 2 Mn shares from the initial offer of 7,547,959 shares.

It had filed its draft red herring prospectus on August 31

MapmyIndia posted a profit of INR 59.4 Cr in FY21, a 157% rise on a year-on-year basis

C.E. Info Systems, the parent company of MapmyIndia, a digital-based mapping startup, has received the approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The startup’s proposed offering would consist of only offer for sale (OFS) from the promoters and the existing shareholders. They would offload up to 9,589,478 equity shares.

Last month, the company increased its offering by over 2 Mn shares from the initial offer of 7,547,959 shares.

According to the revised offer, promoter Rashmi Verma would offload 4,093,377 equity shares, up from 3,070,033 mentioned in the DRHP filed on August 31, 2021.

Similarly, an early investor in the company, Qualcomm Asia Pacific will sell 2,701,407 shares, compared to 2,026,055 offered earlier. Zenrin and other shareholders have also increased their offer of sale. 

The enhancement of the offer came after the company had issued specified securities, including equity and preference shares to the existing shareholders.

On October 7, 2021, Rashmi Verma, the company’s executive director, was allotted 2,351,158 bonus shares in the ratio of 1:3, the addendum showed. The other promoter, Rakesh Kumar Verma was allotted 1,877,485 bonus shares on October 7, 2021.

Further, recent regulatory filings showed that the company has converted over 4 Mn compulsory convertible preference shares (CCPS) into over 20 Mn equity shares, in the ratio of 1:5.

On September 20, 2021, the board of directors of C.E. Info Systems approved the conversion of 40,54,969 compulsory convertible preference shares into 20,274,845 equity shares.

Post the shareholders’ approval to the conversion of CCPS, 11,143,660 equity shares were allotted to PhonePe Singapore, 3,385,155 shares to Qualcomm, and 5,746,030 shares to Zenrin. PhonePe, a subsidiary of Flipkart, is not offloading its shares in the proposed IPO.

MapmyIndia said that the allotments were done at prices “which may be lower than the offer price”. 

Shareholding Pattern

The allotment of bonus shares and conversion of CCPS into equity shares has not changed the shareholding in the company.

  • The promoters hold 32.31% stake in the company—Rashmi Verma and Rakesh Kumar Verma hold 17.66% and 14.11% stake in the company respectively.
  • Qualcomm and Zenrin hold 8.48% and 17.82% stake, respectively. 
  • Flipkart-subsidiary PhonePe holds significant shares in the company with PhonePe India having a 19.15% stake and PhonePe Singapore holding 16.96% stake.
  • The only other shareholder with more than 1% stake in MapmyIndia is Nayan Arun Jagjivan, who holds 3.73% stake. Jagjivan is among the shareholders who would partly offload their stake in the public offering.

Founded in 1995, C.E Info Systems is among the few tech-based companies that are profitable and planning a stock market debut. MapmyIndia posted a profit of INR 59.4 Cr in FY21, a 157% rise from INR 23.1 Cr profit it posted in FY20. The company’s total income swelled up to INR 192.2 Cr in FY21 from INR 163.4 Cr in FY20.

The company’s total expense dropped to INR 113.5 Cr in FY21 from INR 131.8 Cr in FY20. It is worth noting that the company has also reduced its employee benefits expense from INR 64.2 Cr in FY20 to INR 53.9 Cr in FY21. 

The company said that the public listing will help its brand’s image and provide liquidity to its shareholders.

IPO Bandwagon

With the regulator’s nod, MapmyIndia will join a slew of startups to hit the public markets. Fintech giant Paytm was the latest tech-backed company to go public, although it witnessed a weak listing.

Prior to that Nykaa made a stellar market debut and Fino Payments Bank also listed with a discount of over 5%.

New age companies waiting to get SEBI’s green signal for their IPOs include OYO, Delhivery, PharmEasy and Droom.