C.E Info System Limited (Map my India) to open for subscription on 9 December to raise Rs 1039.61 crores.

C.E Info System Limited (Map my India) IPO

Map my India is a data and technology products and platforms company, offering proprietary digital maps as a service (“MaaS”), software as a service (“SaaS”), and platform as a service (“PaaS”). As per the report of F&S Map, India is India’s leading provider of advanced digital maps, geospatial software, and location-based IoT technologies. Having pioneered digital mapping in India in 1995, the firm has earned a market leadership position in this industry and built a strong moat by capitalizing on the firm’s early mover advantage, developing proprietary and integrated technologies, full-stack product offerings, continuous innovation, and robust sustainable business model. The firm’s digital maps cover 6.29 million kilometers of roads in India, representing 98.50% of India’s road network which was 6.39 million kilometers as of March 31, 2019, on a provisional basis as per the Annual Report of the Ministry of Road Transport & Highways, Government of India for the year 2020–2021. As of March 31, 2021, the firm serviced over 2,000 enterprise customers since its inception.

The firm is all set to launch its IPO and will open for subscription from 9th December 2021 and the sale of the share will continue till 13 Dec 2021. The IPO is an entirely on offer for sale to sell 10,063,945 equity shares, having a face value of Rs 2.  50% of the issue is reserved for qualified institutional investors, and the rest of 35% and 15% is reserved for retail investors and high net worth individuals, respectively. The shares will be allotted on 16 Dec 2021, and a refund, in case of non-allotment will be initiated on 17 December 2021. Finally the shares will be listed on both NSE and BSE on 21 December 2021. A retail investor can invest a minimum amount of Rs14,462 to buy one lot consisting of 14 shares and the maximum investment permitted is Rs188,006 to buy  13 lots making it a total of 182 shares. The price band for the IPO has been fixed at Rs 1000-1033.  Grey market premium for the CE info system is on the constant rise and has touched the level of Rs800, just a day before the window of subscription open.

Axis Capital Limited, DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd), JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, will act as lead managers for IPO, and Link Intime India Private Limited is the registrar of the C.E. info system IPO.

The objective behind the IPO is to achieve the benefit of listing on the stock exchange. As it’s an entirely offer for sale IPO thus firm will not receive any proceeds from the IPO.

The firm is fundamentally sound with competitive strengths like proprietary technology and network effect, Independent, global geospatial products and platforms company with strong data governance and prestigious customers across various industrial sectors. C.E info system also has a strong financial track record. The operating revenue of the firm grew at a rate of 17.61% in the last year to report a revenue of Rs 1922.74 million against Rs1634.78 million earned in the year 2020. The cumulative annual growth rate in the last three years remained at 5.5%. Net profit for the SaaS company surged from Rs362.38 million to Rs594.33 million in FY2021 from Rs 231.95 million earned a year ago.

High fundamentals coupled with a strong financial record, make C.E info system (map my India) a lucrative company to invest in. However, investors must do their research before making any investment decision in the IPO, as investments in the stock market are subject to systematic risk.

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