Indian digital mapping firm MapmyIndia filed its draft offer documents on Tuesday with India’s markets regulator Sebi for an initial public offering (IPO).
The IPO will see an offer-for-sale of up to 7,547,959 equity shares by shareholders at a face value of Rs 2 each, amounting to around 19% of post-offer paid-up equity share capital. The company did not reveal other details about the offer in its draft red herring prospectus (DRHP).
It is worth noting that MapmyIndia’s IPO is an exclusively secondary sale offer whose primary objective is to give its existing shareholders a partial exit from the company. The company itself will not receive any money through the IPO.
The selling shareholders include the company’s executive director Rashmi Verma who is looking to offload upto 3,070,033 shares, and investors Qualcomm and Japanese map maker Zenrin who will sell upto 2,026,055 and 1,027,471 shares respectively, among others.
Of the shares offered for sale by the selling shareholders, Verma’s shares were acquired at a cost of Rs 0.23 per equity share, Qualcomm’s shares were acquired at a price of Rs 69.6 per equity share and Zenrin’s shares at Rs 126 per equity share.
MapmyIndia’s board of directors include co-founder Rakesh Verma, his son Rohan Verma, Alder Capital’s Rakhi Prasad, and Sonika Chandra who has been nominated by PhonePe and is the company’s VP for business development and strategic partnerships, among others.
As per MapmyIndia’s draft offer documents, payments firm PhonePe is the biggest shareholder in the company with a 36.11% stake. Zenrin owns a 17.82% stake in the digital mapping firm, Rashmi Verma owns 17.66% and co-founder Rakesh Verma owns 14.11% of the company. Qualcomm has an 8.5% stake in the company.
MapmyIndia is a profitable company that makes it the fourth profitable startup that is going public this fiscal after the likes of travel broker ixigo, lifestyle retailer Nykaa and used car marketplace CarTrade.
The latter has already been listed on the Indian stock exchange, and just like MapmyIndia, CarTrade IPO’s primary objective was to give its shareholders a partial exit. It was listed at a 1.11% loss last month. It was last quoted at Rs 1,469.35 after markets closed on Wednesday, compared to its listing price of Rs 1,600.
In FY21, MapmyIndia reported revenues of Rs 152 crore, up 3% compared to FY20. 90% of the company’s revenue in the last fiscal came from the sale of map data and software whereas the remaining 10% came from the sale of internet of things (IoT) products.
The company’s net profit more than doubled from Rs 23 crore in FY20 to Rs 59 crore in FY21. This was driven mostly on account of reduction of expenses including employee benefit, advertisement and travelling costs.
The company reported a net worth of Rs 358 crore in FY21 compared to Rs 298 crore in FY20. Its earnings per share increased to Rs 14.66 in FY21 from Rs 5.70 in FY20. Importantly, its book value per share increased to Rs 88 per share in FY21 from Rs 73 per share in FY20. At a price to book value of say, 10, that translates to an offer price of Rs 880, which would be amazing returns for its early shareholders.
It generated net cash of Rs 83 crore from operating activities in FY21 as opposed to Rs 26 crore in FY20.
The company claimed new orders worth Rs 141 crore, 271 crore and 468 crore in FY19, FY20 and FY21 respectively. About 30%, 21% and 30% of these orders in the three consecutive fiscals were based on fixed pricing while remaining on volume projections for vehicles on which OEMs intend to bundle their solutions or APIs.
MapmyIndia said that the total Indian addressable market of digital maps and location-based intelligence services is expected to grow to $7.74 billion in 2025 at around 15.5% CAGR from 2019 to 2025. The total global addressable market is expected to reach around $173.61 billion by 2025.
As per its DRHP, MapmyIndia competes with the likes of Google Maps, Trimble, ESRI, MapBox, Here Technologies and TomTom. The company was founded in 1992 by Rashmi and Rakesh Verma and commands a 90% market share in the automotive maps market and works with major automakers and also powers maps of Apple and Amazon’s Alexa.
Investment banks Axis Bank, JM Financial, Kotak Investment Banking, DAM Capital, and Link Intime are the book managers of the IPO.
MapmyIndia revealed that it has one outstanding litigation for criminal proceedings filed by the company and its promoters against parties.