MapmyIndia IPO (C.E. Info Systems IPO) – How good is this IPO?

MapmyIndia IPO (C.E. Info Systems Limited IPO) Details

New Delhi based MapmyIndia is coming up with an IPO that would open for subscription on 9th December 2021. MapmyIndia provides advanced digital maps, geospatial software and location-based IoT technologies in India. Company shown good revenue growth in the last 3.5 years. Its margins have improved too. Should you invest in MapmyIndia IPO? This article would provide IPO details, Dates, GMP, Listing Date and conclusion on whether this is good or bad for investment.

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About C.E. Info Systems Limited

They are 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).

They are India’s leading provider of advanced digital maps, geospatial software and location based IoT technologies.

They provide products, platforms, application programming interfaces and solutions across a range of digital map data, software and IoT for the Indian market and under the MapmyIndia brand and for the international market under the Mappls brand.

As of the end of Sep-21, they have serviced over 2,000 enterprise customers since its inception. They have 500 customers on SaaS, PaaS and MaaS platforms. Its customers include marqee and renewed global tech giants, new age consumer internet technology companies, leading automotive manufacturers, large business across industry segments such as BFSI, Telecom, FMCG etc., Some of the customers include Flipkart, HDFC Bankl Airtel, PhonePe, MG Motor, Avis, Safexpress, Goods and Service Tax Network (GSTIN) etc.,

MapmyIndia IPO details and Price

IPO Opening Date 09-Dec-21
IPO Closing Date 13-Dec-21
Issue Type Book Built Issue IPO
Face Value Rs 2 per equity share
IPO Price band Rs 1,000 to Rs 1,033 per equity share
Lot Size 14 Shares
Min Order Quantity 14 Shares
Listing at BSE and NSE
Total Issue Size Rs.1,039.61 Crores
    Fresh issue     Nil
   OFS     Rs.1,039.61 Crores

MapmyIndia IPO RHP

What are the strengths of C.E. Info Systems Limited?

1) Company is B2B and B2B2C market leader in India with a comprehensive suite of SaaS, PaaS and MaaS offerings capitalizing on early mover advantage

2) It is Independent, global geospatial products and platforms company, with strong data governance

3) Company with the market position built around proprietary technology and network effect resulting in strong entry barriers

4) It has marquee customers across sectors with strong relationships and capability to up-sell and cross-sell

5) Company offerings have ever expanded the use cases and we innovate to address technology paradigm shifts

6) Company has a profitable business model with consistent financial track record, high operating leverage and strong cash flows.

What are the Objects of the IPO Offer?

MapmyIndia IPO Size is Rs 1,039.6 Crores and the entire amount is Offer For Sale.

Under OFS, selling shareholders would sell their shares and company would not get any money from this IPO proceeds.

Beyond this, the company would get listed benefits.

Who is the promoter of C.E. Info Systems Limited?

Rakesh Kumar Verma and Rashmi Verma are the promoters of the company.

How is the company financial track record?

Here are the total assets, revenues and profits of the company in the last 3 years and 6 months.

Financial Year ending / Period ending (Amt in Mns)
Particulars FY19 FY20 FY21 Sep-21
Total Assets 3,392.6 3,578.3 4,268.6 4,659.6
Revenues 1,633.4 1,634.8 1,922.7 1,225.8
Profit After Tax 335.7 232.0 594.3 467.7
Profit % 20.55% 14.19% 30.91% 38.15%

Why to invest in MapmyIndia IPO?

Here are the positive factors in this company.

1) Company is the leading provider of advanced digital maps, geospatial software and location based IoT technologies in India.

2) Company is the early mover in this segment and pioneers in digital mapping in India.

3) Company has marquee customers across sectors and with strong relationships.

4) Company generated good revenue growth in the last 3.5 years. Its revenues increased from Rs 163.3 Crores in FY19 to Rs 192.2 Crores in FY21.

5) Company has strong margin growth in the last 3.5 years. Its profits have increased from Rs 33.5 Crores in FY19 (20.5%) to Rs 59.4 Crores in FY21 (30.9%). Even for the 6 months ended Sep-21, it generated margins of 38.1% of the revenue.

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Risk Factors of investing in MapmyIndia IPO

1) The entire proceeds of the IPO is Offer for Sale. Means, the IPO proceeds would go to selling shareholders and company would not get anything except for listing gains.

2) The IPO Price, market capitalization to revenue multiple and P/E ratio based on Offer price may not be indicative of the market price of equity shares upon listing or thereafter.

3) Company is dependent on trends in the sectors where enterprise customer operate.

4) Part of the business is dependent on the performance of the auto sector in India. Any adverse changes in the conditions affecting this sector can impact the business.

5) Company’s inability to maintain or update its map database or errors in its map database could harm the reputation of the company.

6) Company depends on a limited number of customers for a significant portion of its revenues. Loss of any such key customers can have significant impact on the revenues of the company.

7) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.

Frequently Asked Questions (FAQs)

What are MapmyIndia IPO Dates?

The IPO would open on Thursday December 9,2021 and closes on Monday December 13, 2021.

What is the minimum amount to subscribe to this IPO?

Investors need to apply for 14 shares at minimum lower price band of Rs 1,000 per share. Minimum amount in such case would be 14 x 1,000 = Rs 14,000. Similarly, minimum amount to be applied on upper price band would be Rs 14 x 1,033 = Rs 14,462.

Is there any employee discount in CE Info Systems IPO?

No, there is no such employee discount in this IPO.

Is it good or bad for investment?

Investors should always invest in fundamentally strong companies along with reasonable IPO price. MapmyIndia generated good revenue growth in the last 3.5 years. Its margins have improved in the last 3 years and 6 months.

What is MapmyIndia IPO GMP today?

GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about the IPO price as it is unorganized market.

MapmyIndia IPO GMP today (Source: Chittorgarh) is at Rs 750 as of the date of writing the article.

MapmyIndia IPO Valuation

The CE Info Systems Limited price band is Rs 1,000 to Rs 1,033 per share.

If we consider last 3 years weighted average EPS of Rs 7.95 and the upper price band of Rs 1,033, P/E works out to be 130x.

If we take FY2021 EPS of Rs 10.99 and the upper price band of Rs 1,033, P/E works out to be 94x.

Similarly, if we take 6 months ended Sep-21 and annualized it for FY22, P/E works out to be 60x.

Means company is asking IPO price of Rs 1,033 in the P/E ratio of 60x to 130x.

There are no listed peers who are doing similar business; hence we cannot ascertain whether the issue price is underpriced or overpriced.

However, considering P/E of 60x to 130x in general, we can conclude the issue price is overpriced.

MapmyIndia IPO dates for subscription, Allotment and Listing

Offer Open 09-Dec-21
Offer close 13-Dec-21
Finalization of Allotment 18-Dec-21
Initiation of Refunds 19-Dec-21
Credit to Demat Account 20-Dec-21
IPO Shares Listing Date 21-Dec-21

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MapmyIndia IPO Review and Analysis

You might be wondering this IPO is good or bad for investment?

MapmyIndia is the leader in the digital mapping in India and have an early mover advantage.

Company has good revenue growth in the last few years. Its margins have improved too.

While there is no listed peers, company issue price seems to be overpriced (considering the high P/E ratio).

Stock markets are correcting now and one should be little cautious about investing in IPOs.

Considering all the pros and cons indicated above, investors can invest in this IPO from medium to long term perspective. Investors can accumulate if such companies’ shares are available at discounted prices posting listing too.

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Suresh KP

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