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MapmyIndia IPO Makes Owners Rakesh and Rashmi Verma Worth $586 Million; Here’s How

MapmyIndia IPO: Twenty-five years after Rakesh Verma and his wife Rashmi Verma started their business to create digital maps in India, their company made its stock market debut, which made the couple worth $586 million thereby entering the rich club. The MapmyIndia IPO, where Rakesh and Rashmi hold majority stake, got listed on the Bombay Stock Exchange as well as the National Stock Exchange, with a premium of 53 per cent a day back amid strong response from bidders. MapmyIndia, formerly known as CE Info Systems Limited, had floated its initial public offering earlier this month amid a recent boom in India.

With the establishment of MapmyIndia, Rakesh and Rashmi Verma entered a sector that was hardly explored in India 25 years ago — with no Google maps or its likes in the scenario. The Vermas showed a new way, painstakingly charting India’s roads and landmarks, for their consumers’ ease. On Wednesday, that effort paid off with MapmyIndia’s stellar debut at the Dalal Street, making Rakesh and Reshmi worth about $586 million. MapmyIndia shares opened at Rs 1,581 on the BSE, 53 per cent up against the issue price of Rs 1,033. On NSE, MapmyIndia stock got listed at Rs 1,565.

Healthy financials with no debt and stellar subscription to its IPO supported the strong listing for MapmyIndia stocks. The stock pared some of the gains to trade 35.7 per cent higher at 1,403 rupees at the end of the day.

The maiden public offer of the advanced digital maps, geospatial software and location-based IoT technologies provider, which was open between December 9 and 13, received a strong response from bidders and was subscribed 155 times.

Apple Inc. and Amazon.com Inc. are among those that have purchased the company’s software, according to a Bloomberg report.

“Nobody understood mapping data when we started,” Rakesh told Bloomberg in a telephone interview before the listing. “Now, 25 years on, mapping data pervades businesses, industries, government-owned companies and ministries,” he said, as per the report.

At 71 and 65, Rakesh and Rashmi have got results of their hard work which started in the mid-1990s when businesses hardly had any interest in buying mapping data, while public internet access was still far from reality in India. Bengaluru and Gurgaon’s startup culture was yet to flourish. But the Vermas stayed, and they stood out by staying. Rashmi, who is in charge of the technology wing of the business, instrumental in expansions into sectors ranging from automotive to government-owned companies. She sold 42,51,044 equity share through the offer.

MapmyIndia IPO was an entirely offer for sale (OFS) issue with to 10,063,945 equity shares by existing shareholders and promoters. The company has raised Rs 1,039.6 crore at Rs 1,033 per share though it will not receive anything from the offer. The company aimed to offload 10,063,945 equity shares and achieve the benefits of listing the equity shares on the stock exchanges.

CE Info Systems is a leading company offering proprietary digital maps as a service (“MaaS”), software as a service (“SaaS”) and platform as a service (“PaaS”). Established in 1995, the company is India’s leading provider of advanced digital maps, geospatial software and location-based IoT technologies.

MapmyIndia provides services to more than 5,000 clients like Mercedes Benz, Maruti Suzuki and Bharti Airtel, and partners with government-run Indian Space Research Organisation and the Indian Meteorological Department.

According to Reuters, the company’s consolidated profit more than doubled to 594.3 million rupees for the year ended March 31 from a year ago, its prospectus showed.

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