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Digital mapping company C.E. Info Systems’ Rs 1,040-crore initial public offering (IPO) will open for investments on December 9, and close on December 13.

The company, headquartered in New Delhi, has got the go-ahead for its IPO from market regulator – the Securities and Exchange Board of India (SEBI).

“The journey can now accelerate further where capital market access will be fully available,” said Rakesh Kumar Verma, Chairman and Managing Director of C.E. Info Systems, at a press conference on Monday.

Better known as MapmyIndia, C.E. Info Systems offers digital maps, geospatial software, and location-based internet of things (IoT) technologies as SaaS (Software as a Service), PaaS (Platform as a Service) and MaaS (Maps as a Service) in India.

Since its inception in 1995, MapmyIndia has serviced more than 2,000 enterprise customers. “There is a long way to go, and this is the start of the journey,” Rakesh Verma told YourStory.

While the company has priced its shares between Rs 1,000 and Rs 1,033 per share against the face value of Rs 2 each, the bids for anchor investors will begin on December 8.

Axis Capital, JM Financial, Kotak Mahindra Capital and DAM Capital Advisors are Book Running Lead Managers for the issue.

Through the IPO, C.E. Info Systems will offer a little over 10 million equity shares for sale, accounting for about 18.9 percent of the post-offer paid-up equity share capital.

According to C.E. Info Systems’ draft red herring prospectus (DRHP), it serves over 500 customers on its SaaS, PaaS and MaaS platforms, including PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress, and the Goods and Service Tax (GST) Network.

Its customers include global tech giants, new-age consumer internet technology companies, auto companies, businesses across banking, telecom, FMCG, industrials, logistics and transportation sectors and key government organisations.

“We have made a significant impact in the lives of our enterprise customers,” said Rohan Verma, CEO of MapmyIndia. “But there are so many more who can benefit from India. And even with existing customers, there is a huge headroom for growth.”

Post the IPO, Flipkart-owned PhonePe, which is a investor in the company, will hold a little more than 18 percent stake in the company, while Qualcomm will exit by selling its entire stake within the stated price range of Rs 1,000 to Rs 1,033 per share, generating 14.36–14.84 times higher returns when its average acquisition cost of Rs 69.6 apiece is compared to the price range.

MapmyIndia derives majority of its revenue from business-to-business (B2B) and business-to-business-consumer (B2B2C) enterprise customers across the public and private sector. It charges its customers fees depending on the time period, users, vehicles, as applicable to its mobility, automobile and fleet customers or annuities for providing licenses and usage rights to its proprietary digital maps API and software.

iPhone-maker Apple uses MapmyIndia for its maps. Last year, the company also worked with the Indian government to provide its mapping service for Co-WIN application.

More than 90 percent of C.E. Info Systems’ revenue in financial year (FY) 2021 was from subscription fee, royalty and annuity payments. It reported a total revenue of Rs 192.27 crore in FY 2021, up 17.6 percent over FY 2020.

“The adoption of our solutions by new-age companies and startup companies across consumer tech, last-mile delivery, shared mobility and e-commerce is helping us scale rapidly,” C.E. Info Systems said in its DRHP, filed in September 2021.

The company reported a profit of Rs 59.4 crore during FY 2021, growing 156.2 percent compared to FY 2020. Over the last three years, its profit grew at a compounded annual growth rate (CAGR) of 20.98 percent.

An IPO from a profitable tech company, operational for more than two-and-a-half decades, could be interesting to watch as market experts believe that the euphoria around start tech IPOs is fading.