MapmyIndia IPO: Latest GMP, subscription status on second day of issue

MapmyIndia's initial public offering (IPO) with a price band of ₹1,000-1,033 a share, has opened for public subscription today and the three-day issue will close on December 13. The digital mapping company on Wednesday said it has mobilised ₹312 crore from anchor investors ahead of its initial share sale.

On day 1, MapmyIndia IPO has been subscribed 2 times with retail portion overbooked 3.28 times, BSE data showed.

The IPO is entirely an offer for sale of up to 10,063,945 equity shares by existing shareholders and promoter. The public issue is expected to fetch ₹1,039.6 crore at the upper end of the price band. 

According to market observers, MapmyIndia shares premium (GMP) have surged to ₹1,010 in the grey market today. The company's shares are expected to list on exchanges on December 21, 2021.

"MapmyIndia is all set to capitalize the exponential growth opportunity being the market leader. It also has an early mover advantage and a profitable business model with consistent financial track record and strong cash flows. However the valuation seems to be marginally rich, hence we recommend a "Subscribe-Long Term" rating to this IPO," said Anand Rathi in a note.

C.E. Info Systems Ltd, popularly known through its brand MapmyIndia, is backed by global wireless technologies company Qualcomm and Japanese digital mapping Zenrin. MapmyIndia is a leading provider of advanced digital maps, geospatial software and location-based IoT technologies.

Considering the company’s leadership position in India, client base and benefits of network effect, healthy margins and return profile as well strong cash conversion, those at Angel One also recommend Subscribe on the issue from a long-term perspective.

The company's data powers Apple Inc.’s Maps and Amazon.com Inc.’s Alexa voice assistant. The company's customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service Tax Network (GSTN).

"Mapmyindia is poised to list at a good listing premium. We suggest investors to keep booking profits on such listing gains. The company will have to justify these valuations premium with a high growth in topline and bottomline in the coming quarters which seem difficult looking at the business model. There are better opportunities to reallocate capital post the recent correction in the broader markets," said Divam Sharma, Co-founder of Green Portfolio.