MapmyIndia IPO sees huge demand; subscribed 155 times at end of final day

MapMyIndia is raising Rs 1039.61 cr via IPO

C E Info Systems Limited (MapmyIndia) IPO, which opened for subscription on 9th December got subscribed by a who[pping 155 times at the end of Day 3 of the issue, backed by strong demand across categories. The company is looking to raise up to Rs 1,039.61 crore through the public issue. Here are the details: ## About Mapmyindia IPO: - **MapmyIndia IPO Date:** 9 December - 13 December 2021 - **MapmyIndia IPO Price band:** Rs 1000 - Rs 1033  - **Issue Size**: Rs 1,039.61 crore (Offer for sale of up to 10,063,945 Equity shares) - **Post Issue Market Cap**: Rs 5,324 crore – Rs 5,500 cr. - **Reservation**: QIB 50%, Retail  35%, NII 15% - **Minimum Investment:** Rs 14,462 - **Bid lot**: 14 shares, and in multiples of 14 shares ## Objectives of the issue The net proceeds from the IPO will be utilised for the following purposes : - to carry out the offer for the sale of 10,063,945 equity shares - to achieve the benefits of listing the equity shares on the stock exchanges ## **About MapmyIndia** - MapmyIndia, incorporated in 1995, offers proprietary digital maps as a service (MaaS), software as a service (SaaS), and platform as a service (PaaS). - They are India’s leading provider of advanced digital maps, geospatial software, and location-based IoT technologies.  - It provides products, platforms, application programming interfaces (APIs), and solutions across a range of digital map data, software, and IoT for the Indian market. - The company primarily serves enterprise customers across 3 major categories - corporate, automotive, and government and their customers in turn serve the larger community of end-users.  - MapmyIndia derives a majority of its revenue from B2B and B2B2C enterprise customers. Their business model is to charge their customer fees per period based on per vehicle, per asset, per transaction, per use case, or per user basis. - They had serviced over 2,000 enterprise customers since their inception as of September 30, 2021. - Some of their customers include PhonePe, Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress, and Goods and Service Tax Network. ## **MapmyIndia Products and Platforms** **Digital Maps and Geospatial Data Products** - They use their proprietary end-to-end technology-driven and AI-assisted mapping systems and processes for digital geospatial data acquisition and processing as well as digital map data productization and dissemination. They provide digital maps across India, containing administrative hierarchy and precise addresses, postal maps, road network and transportation maps, places of interest and business, land use/land cover maps.  **Map, Location, and Navigation Platforms** - The company provides interactive 2D, 3D, outdoor, and indoor map rendering, as well as location search, reverse geocoding, geocoding, and route planning, optimization, traffic, and turn-by-turn visual and voice-based navigation platforms. **GIS, Geospatial Analytics, and GeoAI Products and Platforms** - It consists of location-based APIs capable of ingesting, processing, publishing, visualizing, and analyzing geospatial data to provide location.  **Location-based IoT, Fleet, and Workforce Automation Products and Platforms** - They provide an IoT platform, InTouch, to enable connectivity with real-world sensors, phones, and IoT devices. **Developer APIs and SDKs** - It offers a large catalog of developer APIs and SDKs, to help them integrate the features, functionalities, and capabilities of all their map, geospatial, and IoT products and platforms into their web and mobile applications. **N-CASE Automotive and Mobility Tech Solutions Suite** - MapmyIndia provides in-vehicle hyper-local, content-rich, turn-by-turn offline, online, and hybrid navigation assistant systems, including connected navigation and in-vehicle commerce and voice assistant solutions. ## **MapmyIndia Listed Peers** There are no listed companies in India that engage in a business similar to that of MapmyIndia. Accordingly, it is not possible to provide an industry comparison. However, much larger **global players exist** and are very strong in their areas of offerings, no other top player offers the breadth of offerings of the MapmyIndia product and service range. ## **MapmyIndia Financials** ![map my india .financials final.png]( - The revenue from operations for FY19, FY20, and FY21 is Rs 135.26 crore, Rs 148.63 crore, and Rs 152.46 crore, respectively.  - The EBITDA for the same period is Rs 40.46 crore, Rs 37.19 crore, Rs 54.32 crore, respectively. - It is one of the few recently listed companies that have reported profits in the last few financial years. The net profit for FY19, FY20, and FY21 is Rs 33.57 crore, Rs 23.20 crore, and Rs 59.43 crore, respectively. - The average EPS (Diluted) and RoNW for the last three financial years is 7.36 and 12.05%, respectively. - Their contribution Margin expanded from 76% in FY19 to 82% in Fy20, to 83% in FY21. - The RoCE (ex-cash and financial investments) were 50%, 41%, and 110% for FY19, FY20, and FY21. ## **MapmyIndia USPs** **B2B and B2B2C market leader** - They pioneered digital mapping in India in 1995 and have earned a leading market position today in the B2B and B2B2C market for digital maps and location intelligence technologies and services. They offer the most comprehensive, detailed, and accurate digital map database for India. Also, they offer the widest range of location-powered software and IoT-enabled technologies compared to other players. **Independent, global geospatial products and platforms company** - MapmyIndia is an independent map, geospatial, and location-based IoT technology company that positions to work with various partners across industries. It allows them to freely innovate for their customers. They enable their customers to leverage and deliver location and navigation products that meet the demand in their own markets. Also, they provide them solutions over the cloud, as well as through hybrid and on-premise deployments. **Strong entry barriers** - They have been able to create, update and maintain digital map data products for India, the world's second-largest country by population. They have built highly differentiated, unique digital assets that are difficult to replicate. Its market position built around proprietary technology and network have made strong entry barriers. **Ever-expanding use cases** - There are a large number of use cases for its products and solutions. As the technology and its adoption evolve, and new technology paradigms emerge, the applicability, relevance, and usefulness of its products and solutions will expand. ## **MapmyIndia Growth Potential** **Increase products, platforms, and technology lead** - The company aims to continuously enhance the scope and quality of its existing offerings to further differentiate itself from the competition. They will continue to build a deeper and broader stack of software products in a modular platform and API-driven manner to increase use cases and adaptability of products and offerings by an ever-increasing addressable market. **Scale and expand customer reach** - Expanding relationships with existing active customers will remain a key strategy of the company going forward. It will continue to leverage domain expertise and knowledge of emerging technology trends to drive incremental growth for the business.  **Drive expansion in international markets** - Their technology suite to be globally usable and geography agnostic. It allows them to offer to the global market its comprehensive suite of location-powered software for advanced mapping, navigation, GIS, etc. They plan to expand international operations through its US subsidiary, CE International, and Silicon Valley office in California, USA. In Japan, they operate through a business reseller agreement with Zenrin. **Selective strategic acquisitions and investments** - They intend to continue pursuing selective strategic acquisition and investment targets and opportunities synergizing and leveraging the existing businesses and brand equity. It will help them enter into new business segments and geographies, to gain new customers, diversify their revenue streams and obtain valuable employee talent.  ## **MapmyIndia Risks** **Dependent on trends in the sector** - The revenue from operations can be significantly affected by a downturn trend or disruptions in the industries where its customers operate. Negative sentiments or downturns in global macroeconomic conditions or disruption in business activities can impact its customers. If economic growth and recovery in the sectors in which its customers operate do not take place over an extended period of time, MapmyIndia's revenue will be affected. **Dependent on the performance of the automotive sector** - The company is exposed to fluctuations in the performance of the automotive markets. Its income from automotive customers is cyclical because its sales are directly dependent on the level of automotive production and affected by the inventory levels of automotive manufacturers. Reduced demand in the market segments, deterioration in the automotive market, continued uncertainty and other such factors will impact the company's business. **Unable to maintain or update map database** - The company's map database requires constant maintenance and updating. There is no assurance that the procedures and programs for maintaining and updating the digital map database will be sufficient to maintain the standard of quality expected by its customers. If they are unable to provide accurate and updated map data and related services or if its map database becomes outdated, it will significantly impact its sales and hence profits. ## **MapmyIndia Review: INDmoney recommendation** MapmyIndia has reported a steady 6% on-year CAGR rise in revenues to Rs 152 crore between FY19 to FY21. The company’s bottomline has also increased at a healthy 32% CAGR from FY19 to FY21. The company has also been able to maintain healthy return ratios as well as good EBITDA margins during the period. 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.** ## Subscription status (End of Day 3) (13th December 2021) | Category | Subscription (times) | |-----------|----------------------| | QIB | 196 | | NII | 425 | | Retail |15 | | Total |155 |

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