IPO Screener: Will MapmyIndia make handsome listing gains?

K. S. Badri Narayanan | | Updated on: Dec 21, 2021

Analysts see stock to list with a 70 per cent premium

Shares of CE Info Systems IPO that owns MapmyIndia will be listed at the bourses today. Most analysts expect the stock to list with a hefty premium of over 70 per cent, given its strong IPO subscription. The IPO was subscribed 154.71.

The company, which powers Apple maps, has fixed the IPO price at ₹1,033, at the upper end of the ₹1,000-1,033 price band.

The ₹1,040-crore initial public offering of MapmyIndia witnessed a strong response from all category investors. The portion allocated for retail investors was subscribed by 15.20 times, while HNIs (non-institutional investors) and QIBs window saw a subscription of 424.69 times and 196.36 times, respectively.

Ahead of the issue, the company, had raised ₹311.88 crore from anchor investors.

Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd, said, “MapmyIndia is one of a kind company in SaaS, PaaS, and MaaS businesses, which has tremendous potential to perform well in the future because it has a moat in B2B business despite the presence of big-name Google Map and some recent developments like the change in regulations and new tie-ups with government organizations may boost the sentiments further.

“It was expected that this can give more than 100 per cent return on a listing day however expectations have tapered down amid sharp correction in the market where the grey market premium is indicating a listing gain of around 70-75 per cent,” he added.

Brokerage firm Marwadi Shares and Finance said: Considering the TTM adjusted EPS of ₹16.30 on the post-issue basis, the company is going to list at a P/E of 63.37 with a market cap of ₹5,500 crore.

Published on December 21, 2021
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