Rating SUSBCRIBE Issue Offer Issue Opens on Dec 09, 2021Issue Close on Dec 13, 2021 Total IPO size (cr) 1,039.61Fresh issue Nil Offer For Sale (cr) 1,039.61Price Band (INR) 1,000-1,003 Market Lot 14 Face Value (INR) 2Retail Allocation 35%Listing On NSE, BSE
Objects of the Issue
⮚ For achieving the benefits of listing on the stock exchanges.
Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion 35
C.E. Info systems limited (MapmyIndia) is a leading provider of advanced digital maps, geospatial software, and location-based IoT technologies in India. The company 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). 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 market under the (Mappls) brand.
⮚ Company provide 2D and 3D visual and voice-based navigation platforms that are interactive, capable of outdoor and indoor map rendering, location search, geocoding and reverse geocoding, as well as traffic and turn-by-turn route planning optimization.
⮚ Its geo-analytics services assist customers in a variety of industries in analyzing their markets and developing prediction models using geographical patterns offered by them. These services also give consumers with near-real-time dashboarding and monitoring capabilities.
⮚ Company’s IoT platform, ‘InTouch’, enables connectivity with real world sensors, phones and IoT devices. It provides a wide range of applications for near real-time vehicle and asset tracking, geo fencing alerts, historical movement and driver behavior analysis, predictive vehicle health alerts, as well as fleet, transport and logistics management
⮚ The company's digital maps comprehensively cover India; approximately its digital maps cover 6.29 million kilometers of roads in India, representing 98.50% of India’s road network.
Outlook & Valuation:
Shareholding (No. of Shares)Pre Issue 53,242,967Post Issue 53,242,967
Indicative Timetable
Finalisation of Basis of Allotment 16-12-2021Refunds/Unblocking ASBA Fund 17-12-2021Credit of equity shares to DP A/c 20-12-2021Trading commences 21-12-2021
The company has shown stable growth in revenue, where it grew from Rs 163.35 cr to Rs 192.27 cr over the period of FY19 to FY21, over the same period profit, has grown from Rs 33.56 cr in FY19 to Rs 59.43 cr in FY21 with a minor dip in FY20. MapmyIndia is the leader in digital mapping in India and has an early mover advantage. We believe that new edge technology including SaaS, PaaS, and MaaS platform providers has a sparkling future for the next few years. The company serves various industries and sectors which is also a positive. The company saw stable revenue growth in the last few years where the margins have improved too also there are no listed peers currently. The IPO is arriving at a PE of 93x and P/BV of 15x on FY21 earnings, being the first mover the company is seeking higher valuation.
IPO Note
C.E. INFO SYSTEMS LIMITED
KEY MANAGERIAL PERSONNEL
⮚ Rakesh Kumar Verma is the Chairman and Managing Director of the Company. He co-founded this Company along with Rashmi Verma in 1995 and has significant experience as an entrepreneur in the field of digital maps and geospatial information technologies.
⮚ Rohan Verma is the Whole-time Director and the CEO of the Company. He joined this Company in 2007 and worked in various capacities and was appointed as CEO of the Company with effect from April 1, 2019.
⮚ Anuj Kumar Jain is the Chief Financial Officer of the company and has been associated with the company since May 2011. He has significant experience in the field of finance, taxation, and accounting.
⮚ Saurabh Surendra Somani is the Company Secretary and Compliance Officer of the company with effect from July 27, 2021. He has significant experience in the fields of legal, secretarial and listing compliance.
⮚ Rashmi Verma is the co-founder and chief technology officer of the company. Prior to founding the company, she worked in the U.S.A., including with the IBM Corporation till 1988. She has significant experience as an entrepreneur in the fields of information technology, management, and the geospatial industry, and digital mapping in India.
⮚ Shishir Verma is the senior vice-president, human resources and corporate affairs, and had joined the company on January 17, 2014. He has to look after corporate and legal affairs of the company.
COMPETITIVE STRENGTHS
⮚ Pioneers of digital mapping in India having an early mover advantage.
⮚ Leading the B2B and B2B2C market for digital maps and location intelligence in India.
⮚ Market position built around proprietary technology and network effect resulting in strong entry barriers.
⮚ Independent, global geospatial products and platforms company with strong data governance. ⮚ Prestigious customers across sectors with strong relationships.
⮚ Profitable business model with consistent financial track record, high operating leverage and strong cash flows.
KEY BUSINESS STRATEGIES
⮚ Continue to scale and expand the customer reach leveraging market presence in India.
⮚ Augment company products, platforms and the technology lead.
⮚ Drive expansion in international markets and geospatial sector
⮚ Pursue selective strategic acquisitions and investments to grow their business
KEY CONCERNS
⮚ The entire proceeds of the IPO is Offer for Sale. Means, the IPO proceeds would go to selling shareholders and company would not get anything except for listing gains.
⮚ Part of the business is dependent on the performance of the auto sector in India. Any adverse changes in the conditions affecting this sector can impact the business.
⮚ Company’s inability to maintain or update its map database or errors in its map database could harm the reputation of the company.
⮚ Company depends on a limited number of customers for a significant portion of its revenues.
⮚ Company is dependent on trends in the sectors where enterprise customer operates.
IPO Note
C.E. INFO SYSTEMS LIMITED
COMPARISON WITH LISTED INDUSTRY PEERS
There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company
FINANCIALS (RESTATED CONSOLIDATED)
Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 38.33 38.33 38.33Convertible Preference Shares 1,289.64 1,289.64 1,289.64Other Equity 2,252.01 1,649.43 1,524.03Net Worth 3,579.97 2,977.39 2,851.99Total Borrowings 5.90 8.80 0.00Revenue from Operations 1,524.63 1,486.29 1,352.55EBITDA 543.24 371.87 404.60Profit Before Tax 787.66 315.96 418.02Net Profit for the year 594.33 231.95 335.66
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