India’s IPO frenzy is expected to break all previous records this financial year, and MapMyIndia is going to be a play a significant role in it. The India-based digital mapping company with a valuation of Rs. 6000 crores is planning to fundraise around Rs. 1200 to Rs. 1300 crores through a public offer. As per reports, they are planning to file DRHP (Draft Red Herring Prospectus) with SEBI in the first week of September.
Even though the finer details of this IPO are yet to be officially released, company sources are confirming that they are planning a post-Diwali IPO launch. Moreover, this move will allow early investors such as PhonePe, Qualcomm and Zenrin to exit. It will also consist of fresh issue equity shares and a chance for company promoters to sell a part of their stake as well. However, the current promoters, the Verma family, will continue to run MapMyIndia.
Here’s more on this subject.
Merchant Bankers of MapMyIndia IPO: In Brief
Furthermore, the company has appointed 3 investment banks to manage this IPO, they are:
- Axis Capital
- JM Financial
- Kotak Mahindra Capital
What will Be the Objective of this IPO?
As already mentioned, no particulars of this IPO is confirmed yet, but sources associated with this IPO say that business expansion is the main target of this IPO. Additionally, it will help current stakeholders to exit from this company as well.
Does Mapping and Geospatial Industry Hold Growth Potential?
The Indian Government has launched new geospatial guidelines, which liberalises policies associated with mapping and producing geospatial data. This new policy change will allow private Indian firms such as MapMyIndia to use high-precision satellites images up to 1 metre without any regulatory permission.
Previously getting clearance from various regulatory bodies used to be a time-consuming process, which hampered the growth of this industry. Owing to this change in policy, India’s geospatial and mapping industry will reach about $14 billion by the year 2030.
Also, there has been a constant demand for better and more precise maps for industries such as logistics, e-commerce delivery, and agriculture.
Another point to note here is that foreign companies cannot use high-precision satellite images, conduct a ground survey, and gather street-view data to create their maps. Organisations need to partner up with an Indian organisation for such data. Hence, indigenous firms like MapMyIndia are at an advantage here.
Can MapMyIndia IPO be a Good Investment Option?
MapMyIndia currently holds an 80% market share in the B2B business segment. Its client list includes corporations such as Flipkart, Coca-Cola, Amazon, Uber, Mercedes Benz and Apple, among others. Apart from these, the company’s customer list includes various Government agencies.
Besides their regular mapping business, the company also provide navigation and analytics solutions. In this line of business, they serve automobile manufacturers such as Hyundai, Maruti, Honda and MG Motors.
Besides their obvious market dominance, MapMyIndia is also growing in terms of revenue and profit. According to the data provided by Tracxn, the revenue of MapMyIndia grew from Rs. 115 crores to Rs. 140 crores. Additionally, in the financial year ended on 31 March 2020, the company posted revenue of Rs. 149 crores from its operations. Their net profit for this fiscal year was Rs. 24 crores.
Unlike other loss-making start-ups going public with a major hype, MapMyIndia is delivering profit. Moreover, it has provided a steady return to its investors over the years, and with this policy change and additional funding, they are likely to continue in this trajectory. So, when launched, MapMyIndia IPO can be one to look out for.
For further updates on MapMyIndia IPO and many other upcoming public issues, keep a close tab on the Angel One Blog section.
Frequently Asked Questions
- Who were the founders of MapMyIndia?
Rakesh and Rashmi Verma were the founders of MapMyIndia.
- What is the IPO launch date for MapMyIndia?
The IPO launch date for MapMyIndia is yet to be announced.
- What is the expected price band of MapMyIndia IPO?
MapMyIndia is yet to share this information.
- How to apply for MapMyIndia IPO?
You can apply for MapMyIndia IPO via Angel One app and website considering you have a DEMAT account. If not, create one to participate in this public offering.