MapmyIndia IPO Booked 2X On Day 1 Backed By Retail Investors, NIIs

SUMMARY

The retail portion was subscribed 3.28 times

The startup raised INR 311.88 Cr from anchor investors on Wednesday

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

The initial public offering (IPO) of C.E. Info Systems, the parent company of digital mapping startup MapmyIndia was oversubscribed on its first day on the back of healthy investor interest.

Overall, the offer was subscribed 2.02 times. Investors placed bids for 1,42,31,406 shares, against the offer of 70,44,762 shares, according to the BSE website.

The retail institutional investors (RII) were in the forefront on day one with bids placed for 1,15,38,380 shares (3.28 times), against the allotted portion of 35,22,381 equity shares.
Non-institutional investors (NII), who largely consist of corporates and high net worth individuals, booked their earmarked portion 1.17 times. NIIs placed bids for 17,59,870 shares, against the allocated portion of 15,09,592 shares.
The institutional investors who generally pitch during the later part of the offer, have also subscribed nearly half the shares kept aside for them. By the end of day one, the qualified institutional buyers (QIBs) placed bids for 9,33,156 shares (0.46 times), out of the earmarked 20,12,789 shares.

On Wednesday (8th December 2021), MapmyIndia raised INR 311.88 Cr from anchor investors by allotting 30,19,183 shares at INR 1,033 per share.

Foreign portfolio investors including Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Aberdeen, HSBC and White Oak invested in MapmyIndia’s anchor round.

Further, the domestic mutual funds which participated included SBI, HDFC, ICICI Prudential, Aditya Birla Sun Life, Tata and Sundaram.

MapmyIndia: Offer For Sale

The IPO consists of an offer for sale (OFS) of 10,063,945 shares. It does not include the sale of fresh shares by the company.

MapmyIndia raised the offer size twice since filing its draft red herring prospectus in September. In October this year, the PhonePe-backed company had increased its offer size to 9,589,478 equity shares, from the initial offer size of 7,547,959 shares.

The major selling shareholders of this IPO include promoter Rashmi Verma, who will offload up to 4,251,044 shares.

US-based technology major Qualcomm will sell up to 2,701,407 shares and Zenrin will offload up to 1,369,961 shares.

MapmyIndia’s Financials

Founded in 1995, C.E Info Systems is among the few tech-based companies that are profitable and got listed. In FY21, it 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.

In the current financial year, for the period of April-September, MapmyIndia reported a net profit of INR 46.7 Cr, 161% higher than INR 17.8 Cr reported during the same period of the last fiscal (FY21).