MapmyIndia Share Price Falls 2.4%, Valuation Hovers Above $1 Bn

SUMMARY

The startup got listed on the exchanges with a premium of over 50% on December 21

Its initial public offering was subscribed 154.71 times

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

Share prices of C.E. Info Systems, the owner of digital mapping startup MapmyIndia declined over 2% today (December 23th, 2021) after opening on a positive note.

Analysts said that the share prices corrected from the highs and the outlook is still positive for the startup. “Today it is a minor consolidation and correction. Investors are waiting for further direction,” said Santosh Meena, head of research, Swastika Investmart Ltd.

The lack of competition for the startup in India is seen as a positive factor in the long run, Meena added.

Market experts also said that upcoming startups in the delivery space and other tech companies will be using mapping technologies which presents a large market for MapmyIndia.

On Thursday, its shares on the BSE closed at INR 1,458.70 per share, lower by INR 35.20 or 2.36% from its previous close. During the session, it declined as much as 3.3% to touch an intra-day low of INR 1,443.85 per share.

Its valuation or the market capitalisation currently stands at over $1.03 Bn (NR 7,766.55 Cr). The startup’s valuation had hit the $1 Bn mark on the day of listing on Tuesday (December 21st, 2021).

Strong Market Debut

The digital mapping major witnessed a strong public market debut on Tuesday as it got listed with a healthy premium of 53% on the BSE at INR 1,581 per share, against the issue price of INR 1,033.

On the National Stock Exchange (NSE), its shares got listed with a premium of 51.1% at INR 1,565 per share.

Grey market premiums, had, however, been suggesting around 100% premium on listing.

The initial public offering (IPO) of C.E. Info Systems which closed on December 13th, 2021, was subscribed 154.71 times, with strong investor interest across categories.

At INR 1,033 a share, the upper limit of the IPO price band, the offer attracted bids worth INR 1.12 Lakh Cr till the offer closed.

The IPO opened on December 9th, 2021 and consisted of an offer for sale (OFS) of 10,063,945 shares.

MapmyIndia’s Financials

Founded in 1995, C.E Info Systems is among the few tech-based profitable ventures and listed entities as well. 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. MaymyIndia’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).