MapmyIndia Shares Plunge 6% As Rakesh Verma To Offload 5 Lakh Shares

Shares of C.E. Info Systems, the parent company of MapmyIndia, plunged over 6% during Wednesday’s (June 26) trading session as promoter and founder Rakesh Verma intends to sell 5 Lakh shares of the company in a block deal.

MapmyIndia shares touched a low of INR 2,271 during the early trading hours on Wednesday, as compared to INR 2,416.10 at its previous close. The shares were trading at INR 2,297.95 at 11:40 AM IST.

After reports emerged on Tuesday that Verma was selling 5 Lakh shares, MapmyIndia confirmed the development in an exchange filing today.

“…the Company has received an intimation from Mr. Rakesh Kumar Verma, Chairman and Managing Director of the Company, for an intention to sell up to 5,00,000 equity shares via bulk or block deals on the stock exchanges, which is less than 1% of paid-up capital of the company,” read the disclosure.

“Mr. Rakesh Verma has been doing philanthropy and investing in startup companies as per his passion and commitment to an Aatmanirbhar, Sarvottam Bharat. To continue to do so, this is the first time he is providing liquidity since IPO. On a post-sale basis, the Promoter Group will continue to have 51.9% stake in C.E. Info Systems Limited,” it added.

Around 6.1 Lakh shares, equivalent to 1.1% equity worth INR 142.6 Cr, of CE Info Systems were traded at INR 2,332 per share today.

As per a CNBC report,  Verma said that the promoters have no intention of selling any further shares in the company.

As per the BSE data, Verma held almost 2.32 Cr shares of MapmyIndia, or a 42.84% stake in the company, as of the quarter ended March 2024. Promoters together held a majority 52.91% stake in the company.

On June 21, shares of MapmyIndia touched an all-time high at INR 2,745.05 after Goldman Sachs projected a 40% upside to its share price from the INR 2,000 level.

The brokerage, in its initiation note, also rated the stock with ‘buy’.

Goldman Sachs believes that the company will benefit from an early-leadership position in fast-growth end-markets, including automotive navigation, mapping devices, connected vehicles, telematics and government digitisation.

MapmyIndia’s consolidated profit after tax (PAT) surged by 35% in the March quarter of FY24 to INR 38.2 Cr, from INR 28.3 Cr it had posted in the same period a year ago. On a quarterly basis, the startup’s net profit surged by 23.2%, as compared to INR 31.04 Cr it had posted in the December quarter.

The startup’s operating revenue increased to INR 106.9 Cr in Q4 FY24, a 47.5% higher than INR 72.4 Cr in Q4 FY23. On a quarterly basis, its operating revenue increased by 16%, from INR 92 Cr in the previous quarter.