The initial public offering of CE Info Systems (MapmyIndia), a fast growing SaaS technology company catering to 500 marquee customers across Consumer Tech, Auto OEMs, enterprises across private & public sector, which kicked off for subscription on Thursday, December 09, was subscribed 154.71 times amid strong retail investor interest in the issue.
The offer received bids for 1,08,98,95,450 shares against the offered 70,44,762 equity shares, as per the 5:00 pm data available on the bourses.
Qualified institutional buyers portion was subscribed 196.36 times, second best after Tega Industries Ltd. Retail investors had put in bid 15.20 times the shares reserved for them, while the part set aside for non-institutional investors was subscribed 424.69 times. Earlier on the first day, the issue was subscribed 2.02 times and 6.16 times respectively.
The primary offering is entirely an offer for sale (OFS) shares with a face value of Rs 2 each, in which its existing shareholders and promoters are offloading 1,00,63,945 equity shares in the range of Rs 1000 - 1033 each.
The offer for sale includes up to 42,51,044 equity shares by Rashmi Verma, up to 27,01,407 equity shares by Qualcomm Asia Pacific Pte Ltd, up to 13,69,961 equity shares by Zenrin Co. Ltd and up to 17,41,533 equity shares by other shareholders.
Brokerage Houses like Religare Securities, Angel One, Kotak Securities, Hem Securities and Motilal Oswal Financial Services etc. have given recommendations of "Subscribe" rating to the issue.
According to brokerage houses, MapmyIndia being a pioneer has certain advantages as its digital maps and other solutions are localized for the challenging Indian Geography and are extensive in terms of coverage. Despite the impact of Covid on key customer market (Automobile & Mobility Tech) in FY21, the company was able to post revenue growth of ~3% and the margin profile is strong which would be supported with growing scale going ahead. At the upper end of the price band, the company is commanding price to sales multiple of ~36x on FY21 revenue and 28x based on TTM Revenues.
Last week, CE Info Sytems raised Rs 312 crore from 24 anchor investors, who were allotted 30,19,183 equity shares at the upper price band of Rs 1033 per share.
Marquee foreign portfolio investors including Fidelity, Nomura, Goldman Sachs, Morgan Stanley, Aberdeen, HSBC and White Oak were allocated equity shares by MapmyIndia into the anchor book.
Leading domestic 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 MapmyIndia's anchor book.
Axis Capital Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited, and DAM Capital Advisors Limited are the book running lead managers to the issue.