MapmyIndia IPO or CE Info Systems IPO opened for subscription on December 9, 2021 and it will remain open for bidders till 13th December 2021. So, its subscription is going to close today and on last date of bidding, MapmyIndia IPO subscription status or CE Info Systems IPO subscription status says that the public issue has been subscribed 6.16 times just in the first two days of bidding. According to market observers, this robust response to the public issue is having its impact on MapmyIndia share price in the grey market as well.
MapmyIndia GMP
According to market observers, MapmyIndia IPO GMP today is ₹1080, which is ₹30 higher from its yesterday's grey market premium (GMP) of ₹1050. They said that for last 4 days, MapmyIndia IPO GMP has sustained above ₹1000 that reflects strong subscription of the public issue.
Market observers said that MapmyIndia IPO GMP on Saturday was at ₹1010 whereas on Friday it was ₹980 per share.
What this GMP mean
Market observers said that GMP is an indication about the expected listing gain in grey market. As MapmyIndia IPO GMP today is ₹1080, it means grey market is expecting MapmyIndia IPO listing around ₹2113 ( ₹1033 + ₹1080), which is more than 100 per cent from its price band of ₹1000 to ₹1033 per equity share.
MapmyIndia IPO subscription status
The public issue worth ₹1,039.61 crore has been subscribed 7.17 times in the retail category, 4.32 times in the QIB category and 6.27 times in the NII category. Following strong response from investors, grey market has gone highly bullish on the public issue.
Advising investors to subscribe the IPO for long term, Ravi Singh, Head of Research and Vice President at ShareIndia said, “MapmyIndia profitability has shown good scope backed with strong technology and high operating leverage. It's significant clientele and rising market share makes it a good bet for long term investment. We advice investors may look to subscribe the IPO for long term and keep a close watch on the future valuations."
Meanwhile, Abhay Doshi, Founder at UnlistedArena.com said, “Map My India (CEISL) provides digital maps under MaaS, SaaS & Paas having strong position in the market. Their digital maps covers 6.29 million kilometres of roads in India, representing 98.50% of India’s road network. With an increase in new age companies, startups across consumer tech, last-mile delivery and e-commerce which needs adoption to map services makes the growth prospect attractive."
On the financial front, EBITDA margins were around 35% for FY21 while net profit grew at 33% CAGR for period of FY19-21. The issue is priced at 13.54x of its book value and the asking PE is at 58x (annualized FY22). Considering the growth and prospect for such tech company, a decent rush for the issue is anticipated.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
