MapmyIndia IPO to go live on Dec 9; Check GMP trends, finances, risks and other details

As the digital mapping company, MapmyIndia is all set to go live with its initial public offering (IPO) on December 9, its GMP is heading strong ahead of the issue opening. The company has set its price band at Rs 1,000-1,033 per equity share in its three-day sale of Rs 1,040 crore and will later conclude on December 12. Apart from that, bidding for anchor investors will open on December 8. 

According to market observers, the shares premium of MapmyIndia has already witnessed a surge and is currently standing at Rs 800 in the grey market. Grey Market Premium (GMP) is a demand in the unofficial market of a share that is going to be listed on the Bombay Stock Exchange and the National Stock Exchange. The issue of MapmyIndia will have 50% of the issue size reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. 

While MapmyIndia is gearing up for going live, bidders need to note down certain points before investing. Read on to know the company's financial track record and also the risk factors involved in investing in MapmyIndia IPO. 

Should you invest in the MapmyIndia IPO?

CE Info Systems, which is the parent company of MapmyIndia will be floating its maiden public issue on December 9, Thursday. While the data and technology products and platforms company aims to achieve the benefits of listing the equity shares, it has also recorded a net profit of Rs 59.43 crore in the financial year 2020-21. This was recorded after a sharp increase from Rs 23.19 crore in 2020. Also, the revenue during the same period increased from Rs 148.63 crore to Rs 152.46 crore.

One of the strengths of the company is its profitable business model which helps in keeping a consistent financial track record, high operating leverage, and strong cash flows. 

Further speaking about the key risks associated with the company, it generates a significant amount of its revenues from the limited number of customers and any loss of the customers or demand for products adversely affects its business and financial condition. Apart from that, the company is also unable to protect intellectual property or any third-party claims. 

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