Mutual funds of India’s HDFC, State Bank of India, Aditya Birla Group and ICICI Bank Ltd are also bidding to become so-called anchor investors in the IPO, the people asked not to be named, as the information is not public. MapmyIndia, officially CE Info Systems Ltd., on Monday said it is raising Rs 1,040 crore ($138 million) by selling shares worth Rs 1,000 to Rs 1,033.
The company set aside less than Rs 400 crore worth of stock for anchor investors and received bids for more than 30 times, according to one of the people. One of the people said that the IPO will set the value of Mapmaker at around Rs 5,500 crore. MapmyIndia said anchor investors can officially bid on December 8, and the public share sale will run from December 9 to December 13. The stock is scheduled to commence trading from December 21.
A representative for MapmyIndia declined to comment on the anchor investors. Representatives for Goldman Sachs and Morgan Stanley as well as asset managers from HDFC, SBI, Aditya Birla and ICICI did not immediately respond to requests for comment.
Data from MapmyIndia includes Apple Inc. K Maps and Amazon.com Inc. have Alexa voice assistants, and customers include Mercedes-Benz, McDonald’s Corp. and e-commerce company Flipkart. Located in the Delhi suburb of Okhla, MapmyIndia is incorporated by Qualcomm Inc. and Walmart Inc. It is backed by PhonePe, a payments company owned by the company.
A rally in India’s stock market has prompted a multitude of Internet startups to list on the public markets. While most of the debuts have been successful, the recent disappointing performance of the country’s biggest startup, digital payments pioneer Paytm, proved to be an exception. Yet the IPO rush continues unabated and MapmyIndia’s share sale is expected to take place this week along with at least three others.
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Unlike many high profile startups in India like Zomato Ltd and Paytm, MapmyIndia is profitable. In the six months through September, Mapmaker’s revenue from operations was Rs 1 billion, compared to Rs 1.52 billion for the previous full fiscal year.
The company was founded by husband-wife duo Rakesh and Rashmi Verma, who continue to run it and remain promoters as per its IPO prospectus.
MapMyIndia, also backed by the Japanese mapmaker Xenrin Company, began operations in the early 1990s, which is considered one of the most challenging countries for mapping. Its products now include AI-powered maps it builds for customers including Avis Budget Group Inc. and Hyundai Motor Company.