The initial public offering of MapMyIndia opened for subscription on Thursday and individuals will be able to subscribe to the issue for three days till December 13.
MapmyIndia, owned by CE Info Systems, is a leading provider of advanced digital maps, geospatial software and location-based IoT technologies in India. The retail portion of the Rs 1,039.6 crore IPO was fully subscribed within the first hour of opening today.
As of 2:20 pm, the IPO was subscribed 1.22 times. The retail quota has been booked 2.28 times, while non-institutional investors have subscribed 0.15 times the portion reserved for them. The portion for Qualified Institutional Buyers (QIBs) has seen 0.15 times subscription.
GMP, LISTING DATE AND OTHER KEY DETAILS
MapMyIndia has set a price band of Rs 1,000-1,039 per share for the IPO. Ahead of the IPO’s opening, the company raised Rs 312 crore from anchor investors. It may be noted that the IPO is entirely an offer for sale (OFS) of up to 10,063,945 equity shares by existing shareholders and promoter.
Investors can bid for a minimum of 14 equity shares and in multiples of 14 thereof. Retail investors will be able to bid for a minimum of 14 shares or one lot at Rs 14,462 and a maximum of 13 lots or Rs 1,88,006 at the upper price band, since they cannot apply for more than Rs 2,00,000 in an IPO.
The company’s shares are trading on the grey market at a huge premium today. The grey market premium of the IPO stood at Rs 805, suggesting that the shares of the company could list at a whopping 77 per cent premium to the issue price. However, investors should note that GMP is expected to change as the IPO nears the listing date.
The company’s shares will debut on the stock market on December 21 and the allotment will be finalised on December 16.
SHOULD YOU SUBCRIBE?
Most brokerages have given a thumbs up to the IPO, given the company’s strong financial position, profitable business model and strong cash flows.
Brokerage Anand Rathi said in a note that MapMyIndia is all set to capitalize on the exponential growth opportunity of being the market leader, adding that it also has an early mover advantage and a profitable business model with a consistent financial track record and strong cash flow.
On the downside, the brokerage added that the valuation seems to be marginally rich. However, the brokerage said investors should subscribe to the IPO for long-term gains.