MapmyIndia soars 54%, valued at ₹846 crore in market debut

BENGALURU: MapmyIndia, which powers Apple Inc’s maps in the country, was valued at ₹846.60 crore ($1.12 billion) after surging 54% in its market debut on Tuesday, underscoring confidence in the digital map provider’s growth prospects.

Shares of the company, also known as CE Info Systems, opened at ₹1,565 before rising as high as ₹1,590, compared with the IPO price of ₹1,033. The stock pared some of the gains to trade 35.7% higher at ₹1,403 by 0724 GMT.

“Going forward, as more companies adopt digitalisation and with the increasing penetration of ecommerce, MapmyIndia would benefit more because it has a firstmover advantage, having created a strong entry barrier for itself,” said Sneha Poddar, assistant vice-president of retail research at Motilal Oswal Financial Services.

Investors will continue to favour MapmyIndia as it is debt-free and has strong growth prospects, she added.

Last week, profit-making MapmyIndia’s initial public offering (IPO) was subscribed a stunning 154.71 times with bids worth ₹1.13 lakh crore. The float, which comprised solely an offer for sale by shareholders, had aimed to fetch ₹1,040 crore.

Barring lacklustre performances by a few large players like Paytm, Indian tech companies have seen strong subscriptions and trading debuts this year as stock markets soared amid abundant liquidity.

Shares of MapmyIndia, which counts Qualcomm Inc and Walmart Inc-backed PhonePe among its early investors, also benefited from Tuesday’s rebound in broader equities from recent declines on fears over the Omicron Covid-19 variant.

It provides services to more than 5,000 clients like Mercedes Benz and Maruti Suzuki, among others.