MapmyIndia, which guides all governments and businesses via digital maps used for smart cities, transportation, security, precision agriculture, is set to raise Rs 1,200-1,300 crore through an initial public offering (IPO) at a valuation of Rs 5,500 crore. The company is likely to file its draft papers with the market regulator next week.
Following this move, PhonePe, which is one of the investors in MapmyIndia, and promoters is likely to sell part of its stake in the IPO that will also include an issue of fresh shares. The IPO is set for post-Diwali time and the company has appointed investment banks Kotak Mahindra Capital, Axis Capital and JM Financial to manage the IPO.
This comes after the food service aggregator, Zomato successfully conducted one of the most successful IPOs of all time last month. As per reports, many companies are planning to raise capital from the public market. Some of the top names doing rounds include Ola, Policybazaar, Droom, Paytm, Ixigo, and Nykaa. These companies have also hired investment bankers.
Meanwhile, founded in 1992 by Rakesh and Rashmi Verma, MapmyIndia, dominates the automotive market, providing services to automakers such as BMW, Tata Motors, Honda and Toyota in India. It also works with companies like Ola, PhonePe, Yulu, Apple and Amazon.
According to news reports, the company posted a net profit of Rs 24 crore on revenue from operations of Rs 149 crore in the year ended March 31, 2020. Data provided by Tracxn show the company’s revenue for fiscal 2019 at Rs 162 crore against Rs 161 crore the previous year.
It posted a profit of Rs 39 crore in FY19 and Rs 35 crore the year before. Between 2015 and 2017, revenue grew from Rs 115 crore to Rs 140 crore, as per Tracxn data. The company was last valued at Rs 1,600 crore when it raised capital from PhonePe in 2015.