CE Info Systems, a digital mapping company known for its brand MapmyIndia, opened at Rs. 1,581 per share on the BSE, 53% higher than its issue price. On the NSE, its shares registered a gain of 51.5% from its issue price as it got listed at Rs. 1,565 per share despite volatility in the equity market.
Launched on 9 December 2021, this IPO saw tremendous demand as it was subscribed 154.71 times. Following this, most analysts recommended subscribing to this issue due to its strong financial performance, data governance and leading position in digital mapping.
Now let us check why there is so much demand for this stock.
About the Company
Founded in 1995, CE Info Systems is a New Delhi-based enterprise providing digital maps of India, geospatial software and various location-based IoT (Internet of Things) technologies. This data and technology products and platforms company offers proprietary digital MaaS (Maps as a Service), SaaS (Software as a Service) and PaaS (Platform as a Service).
It provides products, APIs (Application Programming Interfaces), platforms and solutions for the Indian market under the MapmyIndia brand for the Indian market and Mappls brand for the international one. The company has the backing of the American multinational corporation Qualcomm and Japanese digital mapping company Zenrin.
CE Info Systems has an active client base of 500 companies and many smaller customers. Its clients include Flipkart, HDFC Bank, Airtel, PhonePe, Hyundai, MG Motor, Safexpress, Avis and GSTN (Goods and Service Tax Network).
Financial Status of CE Info Systems
MapmyIndia’s parent company registered substantial profits in FY21 at Rs. 59.43 crores, against Rs. 23.19 crores in FY20. Revenue during this period was clocked at Rs. 152.46 crores compared to Rs. 148.63 in the previous financial year.
In the six month period ending on 30 September 2021, the company’s profits jumped to Rs. 46.76 crores from Rs. 17.86 crores in the same period last year. Revenue from April to September has increased to Rs. 100.3 crores against Rs. 55.18 crores in the same period in FY20.
Now let us take a look at its financials for the last three fiscal years.
|For the Year Ended at||Total Revenue||Total Assets||Profit After Tax (PAT)|
|30 March 2021||1922.74||4268.56||594.33|
|30 March 2020||1634.78||3578.26||231.95|
|30 March 2019||1633.35||3392.59||335.66|
Note: Values are in Rs. Millions
How Did the CE Info Systems IPO Perform?
The Initial Public Offering of CE Info Systems saw a robust response being oversubscribed 154.71 times on 13 December 2021. It received a total of 108.98 crores bids against an issue size of 70.44 lakhs as of its closing day.
Of these, Qualified Institutional Buyers (QIBs) subscribed 196.36 times, while Non-Institutional Investors (NIIs) placed a whopping 424.69 times subscriptions. Retail Individual Investors (RIIs) oversubscribed to the public issue by 15.20 times.
Half of the IPO was reserved for QIBs, while NIIs had 35% and retail investors had 15% of the shares reserved. Before the opening of the IPO, the company also raised Rs. 312 crores from anchor investors.
The CE Info Systems IPO was entirely an OFS (offer for sale) by existing shareholders open for subscription from 9 December to 13 December. The price band for the issue was set at Rs. 1000 to 1003 per share with a minimum investment of 14 shares worth Rs. 14,462.
The main objective behind this IPO was to offload 1,00,63,945 equity shares of shareholders like Qualcomm Asia Pacific Pte Ltd., Zenrin Co Ltd., and Rashmi Verma. The promoters Rakesh Kumar and Rashmi Verma reduced their shareholding to 53.73% from 61.16% with the public issue.
Prospects of CE Info Systems’ Stock
On 21 December 2021, CE Info Systems made a stellar debut on both the NSE and BSE, registering gains of 53% and 51.5% from its issue price of Rs. 1033. As of 12:35 PM, 22 December 2021, it was trading at Rs. 1457.50 with a market cap of Rs. 7,774 crores.
The company is an industry leader in India’s B2B and B2C markets for digital maps and location intelligence. It serves many renowned government institutions and private players in sectors like telecom, industrials, logistics, BFSI, and transportation.
CE Info Systems are the pioneers in digital mapping in India and thus, have the early mover advantage. Moreover, it has a sustainable business model with high operating leverage and a consistently profitable financial track record.
Investors who had applied for this IPO can benefit short-term from the current listing gain. Long-term investors may want to continue holding the stock as the company appears to have a bright future ahead. However, one should always do adequate research before making such decisions.
Frequently Asked Questions
- Who were the BLRMs to this IPO?
Given are the book running lead managers to the CE Info Systems IPO:
- JM Financial Consultant Pvt Ltd
- Axis Capital Ltd
- Kotak Mahindra Capital Co Ltd
- DAM Capital Advisors Ltd
- Which government institutions in India employ MapmyIndia’s services?
The following key Indian government institutions have entered into MoU (Memorandum of Understanding) with MapmyIndia:
- Government of India
- Ministry of Electronics and Information Technology
- National eGovernance Division
- NITI Aayog
- Indian Space Research Organisation (ISRO)
- How much of India’s geography has been mapped by MapmyIndia?
MapmyIndia provides digital maps which cover 98.5% of India’s road network totaling 6.29 million kilometers. It provides detailed analytics and location of 14.51 million houses across 7,933 towns and 6,37,422 villages, as well as 17.79 million restaurants, shops, and ATMs.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock