MapmyIndia's share sale through initial public offering (IPO) was subscribed 2.02 times on the first day of issue, according to subscription data on the stock exchanges. The IPO of the leading provider of advanced digital maps, geospatial software, and location-based IoT technologies, opened today for subscription and will close on December 13.
On Thursday, the portion reserved for retail individual investors was subscribed 3.28 times - the highest among the three groups of investors. The portion set aside for qualified institutional buyers or QIB was subscribed 0.46 times, while the portion reserved for non-institutional investors was subscribed 1.17 times.
The company has fixed price band of Rs 1,000-1033 per share and a retail investor can bid for minimum one lot of 14 shares up to maximum of 13 lots. One lot of MapmyIndia shares will cost Rs 14,462 at the upper range of the price band.
It is planning to raise Rs 1,040 crore from the public offer which is entirely an offer for sale. The investors including Rashmi Verma, Qualcomm Asia Pacific and Zenrin Co. Limited are selling shares in the IPO.
Owned by CE Info Systems, MapmyIndia has built maps for more than six million km, covering 98.5 percent of the country's road networks under the MapmyIndia brand.
''At the higher end of the price band, MapMyIndia IPO is priced at a PE ratio of 94 times FY21 earnings. This seems to be aggressively priced. However, as there are no listed peers, the company could command a scarcity premium.
Given the company's steady rise in topline, robust bottomline growth, healthy margins, strong return ratios and strong runway for growth, we remain "Positive" on the long-term prospects of the issue," SEBI-registered investment advisor INDmoney said in a report.
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