MapMyIndia IPO opens for subscription: Grey market premium strong, should you subscribe?

The IPO is fully a suggestion on the market of as much as 1.06 crore fairness shares.

IPO of C.E. Info Systems Ltd. (CIES), a knowledge and know-how merchandise and platforms firm that owns the MapmyIndia portal, opened for subscription on 9 December and can shut on December 13. The firm is seeking to elevate Rs 1,039.6 crore from the difficulty, which is fully a suggestion on the market (OFS) by current shareholders. Investors can bid for the difficulty in a hard and fast worth band of Rs 1,000-1,033 apiece. Shares are prone to be listed on inventory exchanges BSE and NSE on December 21.

MapmyIndia IPO Grey Market Premium:

Ahead of IPO subscription opening, shares of MapMyIndia had been commanding a good-looking premium of Rs 880 per share within the gray market, over the IPO worth. MapMyIndia share GMP, in keeping with IPO Central, was within the Rs 1,000 – 1,033 vary on Thursday. The firm’s shares are anticipated to record on exchanges on December 21, 2021.

The IPO is fully a suggestion on the market of as much as 1.06 crore fairness shares by current shareholders and promoters. The IPO committee has finalised allocation of 30,19,183 fairness shares to anchor buyers at a worth of Rs 1,033 per fairness share. The public problem is anticipated to fetch Rs 1,039.6 crore on the higher finish of the value band.

Profitable enterprise mannequin with constant monetary observe report, excessive working leverage and powerful money flows 

Axis Capital in its IPO observe stated, “Company’s business model is to charge their customers fees per period based on per vehicle, per asset, per transaction, per use case, per user, as applicable. These take the form of subscription fees, royalties, annuities in return for providing licenses and usage rights to their proprietary digital MaaS, PaaS and SaaS offerings. The subscription fee, royalty and annuity payments together contributed over 90% of their revenue from operation for Fiscal 2021. Since most of their products, platforms and solutions are digital, created in-house, and then deployed and delivered over the cloud, the company as a business are asset-light, with relatively low variable cost base. This enables them to have a high operating leverage in the business. For the Financial Year 2021, their Contribution Margin was 83%, EBITDA margin was 35% and PAT margin was 31%.

Subscribe to the issue for the long term

Arihant Capital in its report on C.E. Info Systems IPO, recommended to ‘Subscribe for long-term’. “At the upper price band of INR 1,033 the issue is priced at a P/E multiple of 94x based on the FY21 EPS of INR 11. CEIS is the market leader in the digital maps and geospatial software industry, effectively creating an entry barrier against potential competition. Its long-standing relationships with high-value clients not only generate repeat sales but also encourage cross-selling and up-selling. The company has strong fundamentals, and it’s profitability is expected to inch up going further. Hence, we recommend that investors Subscribe to the issue for the long term,” it stated.

No listed firms in India whose enterprise is comparable

Brokerage home Marwadi Shares and Finance Limited really helpful ‘Subscribe’ for the IPO. “There are no listed companies in India whose business is comparable with that of the company’s business. We assign the “Subscribe” score to this IPO as the corporate is among the main information and know-how merchandise and platform firm has a well known model MapmyIndia with clients like PhonePe, Hyundai and Flipkart. Also, it’s accessible at an affordable valuation contemplating the longer term development potential,” they stated.

“The total Indian addressable market of digital maps and location-based intelligence services is expected to grow to Rs 479.9 billion in 2025 at around 15.5% CAGR from 2019 to 2025, and most of this growth would be from new projects and policies announced by the Government of  India that encourages domestic players of digital maps and associated solutions. We believe MapmyIndia is well placed to capitalize on domestic opportunities. At the upper price band of Rs 1,033, stock is aggressively priced at 58.8x its FY22E  EPS of Rs.17.57 (based annualize latest earnings). Hence, we recommend subscribing to the issue only for listing gains”, stated Investments Ltd in its report.

Subscribe from long-term perspective

Recommending ‘Subscribe’ for the difficulty, Ashika Research stated in its observe, “Increased adoption of the navigation, connected, autonomous, shared and electric mobility technologies in the automotive sector, and of the IoT and telematics technologies in the mobility, transportation and logistics sectors also help in business growth. Hence, it is recommended to “SUBSCRIBE” the difficulty from the long-term perspective.”

Fidelity, Nomura, Goldman Sachs, HSBC Global, Morgan Stanley, University of Notre Dame DU LAC, Volrado Venture, Aberdeen Standard Asia Focus Plc, Theleme India Master Fund, Pinebridge Global Funds, and Alchemy Leaders are amongst marquee buyers that invested within the firm through anchor ebook.

Domestic buyers together with SBI Mutual Fund, HDFC Trustee Company, ICICI Prudential, Aditya Birla Sun Life Trustee, Nippon Life, HDFC Life Insurance, Tata AIA Life Insurance, Tata Mutual Fund, Sundaram Mutual Fund, IDFC MF, and Edelweiss Trusteeship participated within the anchor ebook.

Get reside Stock Prices from BSE, NSE, US Market and newest NAV, portfolio of Mutual Funds, Check out newest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and comply with us on Twitter.