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MapmyIndia Increases IPO Size By 2 Mn Shares

MapmyIndia Increases IPO Size By 2 Mn Shares

Its initial offer for sale was of 7,547,959 equity shares which has been revised to 9,589,478

According to the revised offer, promoter Rashmi Verma would offload 4,093,377 equity shares

Qualcomm Asia Pacific will sell 2,701,407 shares, compared to 2,026,055 offered earlier

C.E Info Systems, the parent company of MapmyIndia, a digital-based mapping startup, has increased its proposed IPO offering to 9,589,478 equity shares post allotment of specified securities, both equity and preference shares to the shareholders.

Its initial offer for sale was of 7,547,959 equity shares.

According to the revised offer, promoter Rashmi Verma would offload 4,093,377 equity shares, up from 3,070,033 equity shares 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. 

Recently, the company 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”. 

MapMyIndia: 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.

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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 the brand’s image and provide liquidity to its shareholders.

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