C E Info Systems Limited (“MapmyIndia”) IPO entails to raise Rs 1,039.61 crore and is purely an offer for sale (OFS) of 10,063,945 equity shares, with a face value of Rs 2 each by existing shareholders and promoters of the company. Among the promoters, Rashmi Verma will sell 42,51,044 equity shares, while other shareholders such as Qualcomm Asia Pacific Pte will offload 27,01,407 equity shares and Zenrin will sell 13,69,961 equity shares.
C E Info Systems Limited (“MapmyIndia”) IPO Details:
| Issue Opens | Thursday, 9th December, 2021 |
| Issue Closes | Monday, 13th December, 2021 |
| Issue Details | Offer for Sale of upto 10,063,945 Equity Shares |
| Face Value | ₹ 2/- |
| Issue Size Net (₹ Cr) | ₹ 1,006 -1,040 Cr |
| Bid Lot | 14 shares |
| Price Band | ₹ 1,000 – 1,033 |
| QIB | 50% of the offer |
| NIB | 15% of the offer (~ 155.94 Cr) |
| Retail | 35% ( ~3,522,381 Share, 363.86 Cr) |
| Appl. for 1x Retail | ~ 2.5 Lacs |
Updates :
- ANCHOR ISSUE: C.E. Info Systems (MapmyIndia) has raised Rs311.88cr from 24 investors in its anchor book, ahead of its initial share sale.
- Marquee foreign portfolio investors including Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Aberdeen, HSBC and White Oak etc.
- Mutual funds such as SBI, HDFC, ICICI Prudential, Birla, Nippon, Tata & Sundaram and life insurance companies such as HDFC Life and Tata AIA Life also participated in the anchor book.
- Equity shares were allocated to 9 mutual funds through 17 schemes amounting to Rs103.96cr i.e. approx. 33% of the Total Anchor Book Size.
C E Info Systems Limited (“MapmyIndia”) IPO Review: Video Presentation
About C E Info Systems Limited (“MapmyIndia”) (India)
C E Info Systems Limited (“MapmyIndia”) was incorporated in 1995.
- The company is a data and technology products and platforms company, offering proprietary digital maps as a service (“MaaS”), software as a service (“SaaS”) and platform as a service (“PaaS”).
- Company is India’s leading provider of advanced digital maps, geospatial software and location-based IoT technologies.
- It provides products, platforms, application programming interfaces (“APIs”) and solutions across a range of digital map data, software and IoT for the Indian market under the ‘MapmyIndia’ brand, and for the international market under the ‘Mappls’ brand.
- Has combined workforce of 734 employees in India and overseas.
- Benefit of marquee investors such as PhonePe, Qualcomm, and Zenrin. •
C E Info Systems Limited (“MapmyIndia”) IPO: Financials
| Particulars / (₹ In Cr) | 2021(6) | 2020(6) | 2021 | 2020 | 2019 |
| Revenue from Operations | 100.03 | 55.18 | 152.46 | 148.63 | 135.26 |
| Revenue Growth (%) | 66.08% | – | 17.61% | 0.09% | – |
| EBITDA | 46.12 | 14.41 | 54.32 | 37.19 | 40.46 |
| EBITDA Margin (%) | 46% | 25% | 35% | 25% | 29% |
| Profit before Tax | 62.85 | 23.73 | 78.77 | 31.6 | 41.8 |
| Net Profit | 46.77 | 17.86 | 59.43 | 23.2 | 33.57 |
| Net Profit (% ) | 38.09% | 24.15% | 30.91% | 14.19% | 20.55% |
| Equity Share Capital | 7.99 | 3.83 | 3.83 | 3.83 | 3.83 |
| NAV – Basic (₹ ) | 76.28 | 60.15 | 68.08 | 56.62 | 54.24 |
| Post IPO Equity | 10.64 | ||||
| FV | 2 | ||||
| IPO Price | 1033 | ||||
| EPS Fy21 | 11.17 | ||||
| PE fy21 | 92.47 | ||||
| PE FY22 (annualized) | 58.75 | ||||
| Market Cap in Cr. | 5496 | ||||
| Market Cap / Sales(ann) | 27.5 |
Salient Points
- MapmyIndia was founded by Rakesh Verma and Rashmi Verma
- After IPO they will have around 53 per cent shareholding in the company.
- After IPO Qualcomm Asia Pacific shareholding: 5.1% -> Nil.
- Zenrin: 8.8% -> 6.2%.
- MapmyIndia digital maps comprehensively 6.29 million kilometres of roads in India (98.50% of India’s road network)
- The company serves the BFSI, telecom, FMCG, industrials, logistics, and transportation sectors.
- MapymyIndia has also entered into various memorandums of understanding with key government organizations such as the Indian Space Research Organisation (ISRO), NITI Aayog, National eGovernance Division, Ministry of Electronics and Information Technology, and GOI.
- The subscription fee, royalty, and annuity payments ~ 90% of revenue for Fy21
Revenue Mix & Sources
- Primarily services enterprise customers across 3 major categories (i) corporate (ii) automotive (iii) Government
- These customers in turn serve larger community of end users.
- offers professional grade maps and products directly to retail customers, through their ‘Move’ app and GPS IoT enabled gadgets and devices.
- Revenue mix for H1FY22: Automotive (39%), Corporate (54%), Government (5%) and Retail (2%).
- MapmyIndia derives majority of their revenue from B2B and B2B2C enterprise customers.
- Business model is to charge customer fees per period based on per vehicle, per asset, per transaction, per use or per user basis. It may be as subscription fees, royalties or annuities for licenses & usage rights to proprietary digital offerings.
Cons
- IPO is entirely offer for sale (OFS) by promoters.
- Regulatory risks. GPS-based navigation products with ability to record a person’s location could raise privacy concerns.
- Large dependence on automotive sector
- Liberalization of the digital mapping industry can lead to permitting certain activities even to foreign enterprises who may have advantages of scale.
C E Info Systems Limited (“MapmyIndia”) IPO: Assessment
- Pioneers of digital mapping in India having an early mover advantage
- Market for digital maps and location-based intelligence services is expected to grow to at a CAGR of around 15.5% from 2019 to 2025.
- GOI may make policies to encourage domestic players of digital maps and associated solutions.
- Prestigious customers across sectors with strong relationships.
- Data from MapmyIndia powers Apple Inc.’s Maps , Alexa voice assistant.
- As of Sep end,2021, the company has serviced over 2,000 enterprise customers.
- Customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network.
- MapmyIndia is backed by Qualcomm Inc. and Walmart Inc.-owned payments company PhonePe.
- Good profitability track record.
- MapmyIndia revenue has grown at a CAGR of 6.17% from FY19-21.
- Long Term revenue contracts of 3-5 years provide good revenue visibility
- A company in Digital Product and Platform segment
- GMP last reported was about Rs. 850
- No Peers.
- Truly represents a step in direction of Atma Nirbhar Bharat
- This IPO is not to be missed IPO for me and shall apply on day 1 or 2.
- IPO is likely to see heavy subscription
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.