According to informed sources, institutional investors Morgan Stanley and Goldman Sachs are bidding to participate in India’s digital map provider MapmyIndia’s initial public offering.
As per Bloomberg news, other investors include mutual funds from HDFC, State Bank of India, ICICI Bank, and Aditya Birla Group, who were named anchor investors to the IPO. MapmyIndia, known as C.E. Info Systems Ltd, informed that they are raising INR 10.4 billion ($138 million) by selling shares in the range of 1000 to 1033 rupees per share.
The company has set aside $4 billion worth of shares for its anchor investors and has so far received more than 30 times bidding. The market capitalization of MapmyIndia will be around 55 billion rupees after the IPO. As per the company, the anchor investors can bid officially from December 8, and the public can subscribe to the IPO from December 9 to December 13. The stock is scheduled to be listed and traded from December 21.
A representative from MapmyIndia, as well as those from Morgan Stanley, declined to comment. Other investors such as Goldman Sachs, HDFC, SBI, Aditya Birla did not respond to their comments on the matter.
MapmyIndia’s data powers both Amazon’s Alexa and Apple’s Maps. Its customers also include Mercedes- Benz, e-commerce company Flipkart, and Mc Donald’s Corp. The company is based in the suburbs of Okhla in Delhi and backed by Walmart Inc-owned PhonePe and Qualcomm Inc.
A massive rally in the Indian stock market has led to many digital start-ups thronging the public market with their IPO’s. Most IPO debuts have been successful except the recent issue of Paytm, which was touted as India’s most prominent start-up and pioneer in digital payment. Still, the IPO rush continues, and three other company apart from MapmyIndia is slated to open this week.
MapmyIndia is a profit-making company, unlike India’s other start-ups like Zomato and Paytm. The company posted revenue of 1 billion rupees for six months ending September compared to 1.52 billion revenues for the full fiscal year previously.
The company is run by promotors husband-wife duo Rakesh Verma and Rashmi Verma. They will continue to run Mapmyindia as promoters after the IPO as per information in the IPO prospectus.
Zenrin Co, a Japanese mapmaker, also backs MapmyIndia. MapmyIndia began operations in the early 1990s. Its product includes AI-powered maps built for clients such as Hyundai Motor Co. and Avis Budget Group Inc.
