Qualcomm Ventures It had invested $5 million in the company about 13 years ago at an average share price of about Rs 52.20 per share, according to the Red Herring prospectus. The price band for the offer has been fixed at Rs 1,000 to Rs 1,033 per equity share, giving Qualcomm Ventures nearly 20 times returns.
MapmyIndia will sell 18.9% equity shares of the firm in its offer for sale (OFS) issue, which is valued at Rs 5,500 crore to the company.
The provider of digital maps, geospatial software and location-based IoT technologies’ IPO will open on December 9 and close on December 13.
Other shareholders who will sell their stake include Japanese map publisher Zenrin and promoter co-founder Rashmi Verma. MapMyIndia will continue to be owned by its founders Rakesh Verma and Rashmi Verma even after the IPO, as they will hold around 53% stake in the company.
“Fundamentally we are a highly profitable, cash generating company. We don’t need to raise fresh funds. We want to be public because it gives more comfort to our customers. Since we did not need to raise fresh funds, we have to form an OFS and there should be a huge inflow into the market,” said CEO Rohan Verma.
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MapMyIndia said it is looking to enhance its products, invest in building a broader technology stack, expand business reach in India and abroad, make selective acquisitions and investments to enter new business segments and markets, and hire highly skilled talent. Will consider Drew, it said during a presentation. on Monday.
The company’s CEO Verma told ET last month that the company’s focus is on the market in India, where business-to-business and business-to-consumer market share for mapping services is the majority.
In February, the government relaxed rules governing the acquisition and application of geospatial data, allowing private firms to use high-precision satellite imagery of one meter and less. As per the policy, foreign companies such as Google Maps may also source such data from local servers of Indian companies, although they may not be the owners of that data themselves.