Qualcomm Ventures, the investment division of Qualcomm Inc., will divest its 5% stake in MapmyIndia. With this, the company is hoping to gain a return equal to 20 times the weighted average price of Rs. 52 for each share that it presently holds. Qualcomm has remained an investor in MapmyIndia for 13 years.
Find more details regarding the Qualcomm Ventures exit and MapmyIndia’s IPO below!
Critical Details Regarding Qualcomm Ventures’ Departure
- Qualcomm Ventures had invested $5 million in this company more than a decade ago.
- They had bought the shares at an average of Rs. 52.20 for each share.
- MapmyIndiahas fixed its IPO price band offer at Rs. 1,000 to Rs. 1,033 for each equity share.
- It rounds up Qualcomm Ventures’ returns to 20 times its investment value.
Key Details of MapmyIndia’s IPO
- MapmyIndiawill sell 18.9% of the equity shares in an offer of sale (OFS). This sale is valuing the company at Rs. 5,500 crores.
- Other investors selling their stake in the company are Zenrin (a Japanese map publisher), and promoter and co-founder Rashmi Verma.
- However, despite the sale by the co-founder, Rakesh and Rashmi Verma will continue to be the majority owners as they will have a stake of 53%.
- On that note, here are some details of the IPO.
| Category | Details |
| IPO Opening Date | 9 December 2021 |
| IPO Closing Date | 13 December 2021 |
| Issue Type | Book built issue IPO |
| Face Value | Rs. 2 |
| IPO Price | Rs. 1,000 to Rs. 1,033 for per equity share |
| Market Lot | 14 shares |
| Listing At | National Stock Exchange, Bombay Stock Exchange |
About MapmyIndia
MapmyIndia is one of India’s leading creators and providers of:
- Digital maps
- Location-based IoT technologies
- Geospatial software
This company also offers Maps as a Service (MaaS), Software as a Service (SaaS), and Platform as a Service (PaaS). MapmyIndia’s digital maps cover around 98.50% of India’s road network. Some of this company’s customers are:
- Airtel
- Flipkart
- HDFC Bank
- Hyundai
- PhonePe
- Yulu
The financial highlights of this company are as follows:
| For the year ended | 31 March 2021 | 31 March 2020 | 31 March 2019 | |
| Total Assets | 4,268.56 | 3,578.26 | 3,392.59 | |
| Total Revenue | 1,922.74 | 1,634.78 | 1,633.35 | |
| Profit After Tax | 594.33 | 231.95 | 335.66 |
Note: Values are in Rs. Millions
In Financial Year 2021, MapmyIndia’s revenue came from the following places:
- 44% from auto organisations
- 9% from the government
- Rest from corporate customers
It has around 500 enterprise customers.
The Objective of MapmyIndia’s IPO
MapmyIndia’s CEO said that it was a profitable company that was generating cash. Moreover, the company did not need to raise new funds but went public because of its customers. In future, MapmyIndia will look at building its product profile, investing in technology, attracting skilled talent, and entering new business segments. Moreover, this company went the IPO route to reap the benefits of listing on the stock exchange.
Bottom Line
Qualified Institutional Buyers will be offered 50% of the net issue, retail investors will be given 35%, and non-institutional investors will be offered 15%. If you are looking to invest in MapmyIndia’s IPO, do so only after thorough research and analysis.
Frequently Asked Questions
- What is the timeline of the MapmyIndiaIPO?
Ans. The timeline of the IPO is as follows:
- 16 December 2021 (Allotment of the shares)
- 17 December 2021 (Refunding the amount to unsuccessful bidders)
- 20 December 2021 (Credit of shares to the Demat accounts)
- 21 December 2021 (IPO Listing Date on the NSE and BSE)
- What are the maximum shares for which an individual or retail investor can apply?
Ans. A retail or individual investor can apply for a maximum of 13 lots of size 14, making the total up to 182 shares or Rs. 1,88,006. Retail investors cannot invest more than Rs. 2 lakh in the IPO.
- Post the issue, what will be the promoter holding percentage?
Ans. Presently, the promoter shareholding is 61.71%, and after the IPO, it will dilute to 53.73% for this company.
- Who are the company’s promoters?
Ans. The company’s promoters are Rakesh Kumar Verma and Rashmi Verma.
- How much stake will Zenrin sell?
Ans. Zenrin will sell around a third of its 9% stake.
