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MapmyIndia’s IPO Opens On December 9, Offer Size Increased

In October this year, it first increased its offer size to 9,589,478 shares, from the initial offer size of 7,547,959 shares

QIBs would be offered up to 5,031,972 shares, and retail investors will be offered up to 3,522,381 shares

CMD Rakesh Kumar Verma now holds 43.50% stake after purchasing stake from PhonePe Singapore, Qualcomm and Zenrin

The initial public offer (IPO) of C.E. Info Systems, the parent company of MapmyIndia, a digital-based mapping startup, will open on December 9 and close on December 13.

Its red herring prospectus (RHP) showed that the startup has increased its offer size to 10,063,945 shares. The IPO only constitutes an offer for sale by existing shareholders and no fresh shares would be issued.

This is the second change in the offer size. 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.

According to the RHP, qualified institutional investors (QIB) would be offered up to 5,031,972 shares, the portion for anchor investors would be up to 3,019,183 shares.

Up to 3,522,381 shares will be allocated for the retail investors and up to 1,509,592 shares will be earmarked for the non-institutional investors.

The major selling shareholders 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.

Shareholding Pattern

  • Promoters hold 53.72% stake in the company. The chairman and managing director of the company Rakesh Kumar Verma holds 43.50% stake 
  • Till the filing of the addendum in October, Verma held a 17.66% stake. It increased after he bought 16.96% stake from PhonePe Singapore, 3.4% from Qualcomm and 7.03% from Zenrin on November 25
  • Rashmi Verma, who is among the selling shareholders in the IPO, is part of the promoter group and holds a 17.66% stake. Verma, the wife of Rakesh Kumar Verma and is the cofounder and chief technology officer of the startup
  • The members of the promoter group include the CEO Rohan Verma and Rakhi Prasad, who own 0.53% and 0.01% stake respectively. They are the children of Rakesh and Rashmi
  • The promoter group also includes Rupa Amitabh, sister of Rashmi, who according to the RHP holds “negligible” shares in the company
  • Flipkart-owned PhonePe India holds 19.15% in the company
  • Zenrin and Qualcomm now own 8.78% and 5.07% respectively
  • The only other shareholder with more than 1% stake in MapmyIndia is Nayan Arun Jagjivan, who holds 3.73% stake. Jagjivan is among the shareholders who would partly offload their stake in the public offering.

Founded in 1995, C.E Info Systems is among the few tech-based companies that are profitable and planning a stock market debut. MapmyIndia 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.

Maymyindia’s total expense dropped to INR 113.5 Cr in FY21 from INR 131.8 Cr in FY20. It is worth noting that the company has also reduced its employee benefits expense from INR 64.2 Cr in FY20 to INR 53.9 Cr in FY21. 

The company said that the public listing will help its brand’s image and provide liquidity to its shareholders.

IPO Bandwagon

With its offer opening on December 9, MapmyIndia will join a slew of startups to hit the public markets. Fintech giant Paytm was the latest tech-backed company to go public, although it witnessed a weak listing.

Prior to that Nykaa made a stellar market debut and Fino Payments Bank also listed with a discount of over 5%. Policybazaar listed on the stock exchanges on November 15 at a premium of 17%.

Travel tech startup RateGain’s IPO will open on December 7 at the price band of INR 405 – INR 425 per share.

New age companies waiting to get SEBI’s green signal for their IPOs include OYO, Delhivery, PharmEasy and Droom.

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