Chip major Qualcomm to book 20X returns in MapmyIndia's Rs 1,040-cr IPO

With early investor Qualcomm exiting its entire 5 per cent stake in digital mapping company MapmyIndia as part of its IPO, the semiconductor major is expected to book a return of almost 20X over the weighted average cost of Rs 52 per share of its current holdings. Qualcomm had first invested in MapmyIndia about 13 years ago.

MapmyIndia aims to mop up Rs 1,040 crore through an initial public offering that will sell 18.9 per cent of the equity shares of the firm. This means that the 25-year-old tech company is valued at Rs 5,500 crore in the IPO.

The provider of digital maps, geospatial software and location-based IoT technologies will open its IPO on December 9 and close on December 13. The price band for the offer has been fixed at Rs 1,000 – Rs 1,033 per equity share.

Japanese mapping company Zenrin will only sell about a third of its 9 per cent stake in MapMyIndia. Fintech unicorn PhonePe, which is an investor in the company, will have a stake of around 18 per cent post the issue.

The company said it was not raising any primary capital through the issue as it is already sitting on about Rs 388 crore of cash and is sufficiently capitalised. “The main reason for wanting to go for an IPO is that the transparency of being a public company will help us garner more faith in what we do,” said CEO Rohan Verma.

MapmyIndia will still be majority owned by its founders Rakesh Verma and Rashmi Verma after the IPO -- as they will have around 53 per cent shareholding in the company.

The mapping company saw its revenue from operations almost double to Rs 100 crore in the six months ended September (H1) compared to Rs 55 crore in the corresponding period last year. Its net profit in H1 od FY22 increased 161 per cent to Rs 47 crore on a year on year basis.

The company’s revenue was marginally up from Rs 149 crore in FY20 to Rs 152 crore in FY21. Its net profit grew 157 per cent to Rs 59 crore in FY21 compared to the previous year as a result of returns from financial investments.

MapmyIndia has around 500 enterprise customers at present for its mapping services and internet-of-things based platform. In FY21, 44 per cent of its revenue came from auto companies, 9 per cent from the government, and the rest from other corporate customers.