OPEN APP
Home / Markets / Stock Markets /  MapmyIndia IPO: What GMP reflects as all eyes set on share allotment date
Listen to this article

MapmyIndia IPO: After closure of 3-day bidding from 9th to 13th December 2021, focus has now shifted towards MapmyIndia IPO allotment date, which is most likely on 16th December 2021. After robust 154.71 times subscription, grey market has started giving positive signals in regard to the public issue. According to stock market observers, MapmyIndia shares are trading at a premium of 1040 in grey market today, which reflects strong listing of the public issue.

MapmyIndia IPO GMP

As per the market observers, MapmyIndia IPO GMP today is 1040, which is 40 lower from its yesterday's grey market premium (GMP) of 1080. Market observers said that after closure of subscription, decline in the GMP was expected but it has managed to sustain above 1000, which reflects strong conviction of the grey market players in regard to this public issue. They said that MapmyIndia IPO grey market price above 1000 signals bumper debut of shares on the listing date.

What this GMP means?

Market observers said that GMP is an unofficial data that indicates how much listing premium grey market is expecting from the public issue. As MapmyIndia IPO GMP today is 1040, it means grey market is expecting that MapmyIndia share may list around 2073 ( 1033 + 1040), which is more than 100 per cent from its price band of 1000 to 1033 per equity share.

However, stock market experts maintained that grey market is an unofficial data and it keeps changing on a daily basis. Most importantly, it has nothing to do with the company's financials. They said that it’s financials of a company that gives proper and concrete picture of the company's business.

On what financials of MapmyIndia reflect about the company's financials; Abhay Doshi, Founder at UnlistedArena.com said, "Map My India (CEISL) provides digital maps under MaaS, SaaS & Paas having strong position in the market. Their digital maps cover 6.29 million kilometers of roads in India, representing 98.50 per cent of India’s road network. With an increase in new age companies, startups across consumer tech, last-mile delivery and e-commerce which needs adoption to map services makes the growth prospect attractive."

"On the financial front, EBITDA margins were around 35 per cent for FY21 while net profit grew at 33 per cent CAGR for period of FY19-21. The issue is priced at multiple of 13.54 of its book value and the asking PE is at multiple of 58 (annualized FY22). Considering the growth and prospect for such tech company, a decent rush for the issue is anticipated," Abhay Doshi of UnlitedArena.com concluded.

MapmyIndia IPO subscription status

In 3 days bidding from 9th December 2021 to 13th December 2021, MapmyIndia IPO got subscribed 154.71 times out of which retail portion was subscribed 15.20 times.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout