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Should you be investing in the ₹1040 Crores MapmyIndia IPO

Should you be investing in the ₹1040 Crores MapmyIndia IPO


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Founded in 1995, C.E. Info Systems (known as MapmyIndia) is a leading provider of advanced digital maps, location-based IoT technologies, and geospatial software in India. They offer proprietary digital software as a service (SaaS), maps as a service (MaaS), and platform as a service (PaaS). The company provides products, platforms, application programming interfaces (APIs), and solutions across a range of digital map data, software, and IoT for the Indian market under the MapmyIndia brand, and for the international markets under the Mappls brand. The digital maps offered by the company cover 6.29 million kilometers of roads in India, representing 98.50% of India’s road network with 7,933 towns, 6,37,472 villages.

The company works in the BFSI, telecom, FMCG, industrials, logistics, and transportation sectors and has signed various memorandums of understanding with government agencies such as the Indian Space Research Organization (ISRO), NITI Aayog, National eGovernance Division, Ministry of Electronics and Information Technology. Some of the company’s customers include Hyundai, Airtel, Flipkart, Yulu, HDFC Bank, and PhonePe.

The company enters long-term contracts of three to five years with its customers ensuring it has consistent revenues.

IPO offers details

  • IPO open from: Dec 9th – Dec 13th 2021
  • Face value: ₹2
  • Price Band: ₹1,000-1,033
  • Market Lot: 14 shares
  • Listing on: BSE and NSE
  • Fresh Equity Issue: None
  • Offer for sale: up to ₹1,040 cr
  • Total issue: up to ₹1,040 cr
  • Promoters: Rakesh Kumar Verma & Rashmi Verma
  • Book running lead managers: Axis Capital Limited, DAM Capital Advisors Lt, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited
  • Registrar: Link Intime India Private Ltd

What is an IPO and should you invest in them?

Offers Break-up

The offer is broken up into the following investor classes:

IPO Strengths

  • B2B and B2B2C market leader: B2B and B2B2C market leader in India with a comprehensive suite of SaaS, PaaS and MaaS offerings capitalizing on early mover advantage
  • Profitable business model: Company business model with a consistent track record. The company charges subscription fees, royalties, annuities in return for providing licenses and usage rights.
  • Market position built strong entry barriers: It has built market position built around proprietary technology. Over the past 25 years the Company has put in efforts to create, update, and maintain a digital map data product resulting in strong entry barriers.
  • Innovative and futuristic approach: Company’s offering have ever-expanding used cases and it innovates to address technology paradign shifts

Key Risks

  • Continuous need to maintain and update map database: Inability to maintain or update the map database or errors in map database could adversely affect its revenues.
  • Few customers with significant revenue: Dependance on a limited number of customers for a significant portion of revenues. 18 customers account for 80% of its revenue in the six month period ended September 30, 2021
  • Improve our technology infrastructure: Any failure to maintain and improve technology infrastructure could result in unanticipated system disruptions and harm the business.
  • Dependence on automotive sector: A part of business is dependent on the performance of the automotive sector, including the key market, India. Indian passenger vehicle market is already going through a difficult phase in Fiscal 2021 as sales declined by 7.9% yoy.
  • Inability to sustain its historical growth rates: Liberalization of the digital mapping industry will increase and intensify the competition.


C.E. Info Systems is a debt-free company with a strong cash position and low capital requirements. It does require huge working capital, combined with the high operating leverage ensures the business generates strong free cash flows. Between 2019-2021 the company’s revenue grew from ₹163.3 crores in FY19 to ₹192.2 crores in FY21. For FY21, the company generated a return on equity of 16.6% and a return on capital employed of 24.8%.

 (₹ in crores)6M Ended 30-Sep-21Year Ended 31-Mar-21Year Ended 31-Mar-20Year Ended 31-Mar-19
Total Assets465.9426.8357.8339.2
Total Revenue122.5192.2163.4163.3
Profit After Tax 46.7 59.4 23.133.5

Valuation and Outlook

At the upper price band of INR 1,033 the issue is priced at a P/E multiple of 94x based on the FY21 EPS of INR 11. CEIS is the market leader in the digital maps and geospatial software industry, effectively creating an entry barrier against potential competition. Its long-standing relationships with high-value clients not only generate repeat sales but also encourage cross-selling and up-selling. With more and more companies adopting SaaS technology, the number of use cases and the addressable market of the company is also growing at a remarkable pace.

The company has strong fundamentals, and its profitability is expected to inch up going further. Hence, investors can Subscribe to the issue for the long term.


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