MapmyIndia IPO Opens, Retail Portion Fully Subscribed In First Hour

SUMMARY

As of 11.05 a.m, the IPO was subscribed 0.53 times or 53%

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

The initial public offer (IPO) of C.E. Info Systems, the parent company of MapmyIndia opened today (December 9th, 2021) with strong response from the retail investors.

As of 11.05 a.m. the IPO was subscribed 0.53 times or 53%. Out of the 70,44,762 shares on offer, bids were placed for 37,17,938 shares.

Most of the bids so far came from the retail institutional investors (RII). So far, RIIs have placed bids for 36,82,112 shares, against the 35,22,381 allocated for them, thereby subscribing the earmarked portion 1.05 times.
The non-institutional investors, consisting of corporates and individual investors other than retail investors have so far bid for 35,350 shares (0.02 times) out of the allocated 15,09,592 shares
Qualified Institutional Buyers (QIBs), who have been allotted 20,12,789 shares are yet to pitch in. Institutional investors generally place their bids on the final day of the offer.

Anchor Investments

The startup raised INR 311.88 Cr from anchor investors on Wednesday (December 8th, 2021) 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 the anchor round.

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

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.

The startup 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 planning a stock market debut. 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, the company 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).