MapmyIndia IPO Review
The company operates under MapmyIndia brand, plans to raise up to Rs 1,040 crore through an offer for the sale of existing shares.
After the IPO, the promoter group’s stake will reduce to 53.7 per cent from 61.7 per cent. The company is going public at a time when Google has been ramping up its presence in the online mapping space globally.
C.E. Info Systems IPO Review: Company Overview
CEISL provides products, platforms, application programming interfaces (APIs), and solutions across a range of digital map data and software for the Indian market under the MapmyIndia brand.
It is to be noted that big investors such as Qualcomm will offload its 5.1 per cent stake while Zenrin will reduce the stake to 6.2 per cent from the existing 8.8 per cent. Also, PhonePe India, which controls 19.2 per cent stake, will not participate in the IPO.
MapmyIndia is a leading GIS, geospatial, satellite imagery products and high-tech digital solutions provider services to the various government and private organizations across the world.
The company provides products, platforms, and application programming interfaces (APIs) based on geospatial data for sales and marketing, analytics, engineering, IT, logistics, and call centres.
The company specializes in creating content for traditional and new age businesses. Some of its clients are PhonePe, Flipkart, HDFC Bank, Airtel, Hyundai, and Goods and Services Tax Network (GSTN).
The company covers 6.3 million kilometres of road with its maps, covering 98.5% of India’s total road network and has 7,933 towns and 6.4 lakh villages. It gets revenue from B2B and B2C categories through subscription and license fees, and royalties.
The adoption of its navigation, connected, autonomous, shared and electric mobility technologies in the automotive sector, as well as its IoT and telematics technologies in the mobility, transportation, and logistics sectors bodes well for the company’s growth.
C.E. Info Sytems IPO Review: Financial Performance
Revenue from operations between the fiscal years 2018 and 2019 increased by 6.2 percent, and net profit rose by 33 percent to Rs 59.4 crore. The corporation’s operating margin before depreciation and amortization (EBITDA margin) increased significantly.
The company’s annualised earnings in the six months ended September 2021 indicate that its price-earnings (P/E) multiple is 58.8. It does not have listed peers in India. It is profitable and has a monopoly in this business.
C.E. Info Sytems IPO Review: Market Opportunities
As of now, the total market in India for navigation solutions and telematics market is expected to grow from ₹ 1.52 trillion in 2020 to ₹ 3.33 trillion This market opportunity is driven by the biggest technological theme that has emerged in the global automotive sector during this 21st Century is CASE — Connected, Autonomous, Shared, and Electric — technologies.
The increased awareness of connected car services, as well as the expanding use of these services, is likely to open huge development prospects in the Indian market for navigation solution providers.
Near real-time traffic and direction information services allow drivers to navigate their vehicles using live traffic data and select the best route.
Other services include parking services, which alert users to open parking spaces, weather services that alert users to climate changes, and concierge services, which offer premier services like timely notifications regarding the GPS screen boards.
As per the F&S Report, businesses use fleet management to increase the efficiency, productivity, and safety of their fleet through near real-time updates. This shift also allows for a new wave of logistics solutions.
Other key trends include increased applications of in-dash navigation services, the rise of demand in electric vehicles, the rise of autonomous vehicles, and the development of shared mobility platforms.
They have built a ground-validated proprietary digital map database for locations across India and developed indigenous tools, technologies, and systems for data acquisition, processing, productization and dissemination.
The company has built its technology suite to be globally usable and geography agnostic which allows them to offer to the global market their comprehensive suite of location-powered software for advanced mapping, navigation, GIS, geospatial analytics, AI, dash-boarding, workforce and workflow management, and IoT-enabled software and hardware solutions for N-CASE mobility, telematics, logistics and transportation.
Is MapmyIndia IPO a good investment?
Yes, it can be a good bet for long-term investment.
When will MapmyIndia IPO allotment status?
The MapmyIndia IPO allotment status will be available on or around Dec 16, 2021, and the allotted shares will be credited in Demat account by Dec 20, 202.
Should you invest in MapmyIndia IPO?
Yes, it’s a highly specialised business and the company has complete monopoly. It’s making a consistent profit and the market size is huge. So, you can apply in the IPO, but from a long-term investment view.