“Navigating Expansion: MapmyIndia’s ₹500 Crore Fundraising Move

CE Info Systems Ltd, operating as MapmyIndia, has recently announced plans to raise funds worth up to ₹500 crore through a Qualified Institutional Placement (QIP). This decision was approved by the company’s board on a Monday, as revealed in a filing with the Bombay Stock Exchange (BSE). The fund-raising process will involve the issuance of equity shares, each having a face value of ₹2, for a total amount not exceeding ₹500 crore. This move is subject to receiving necessary approvals from shareholders and regulatory and statutory bodies​​​​.

In the financial performance context, MapmyIndia demonstrated robust growth in the September quarter (Q2 FY24). The company reported a net profit of ₹33 crore, marking a 30% increase from the ₹25.4 crore recorded in the same period the previous year. Its revenue from operations also saw a significant jump of 19.4%, reaching ₹91.1 crore compared to ₹76.3 crore in the corresponding period last year​​​​.

The company’s stock performance has also been noteworthy. On a Friday, the stock closed 0.39% higher at ₹2,200.45. However, the trading volume on that day was lower than the two-week average, with only 4,447 shares changing hands. Despite this, MapmyIndia commanded a market capitalization of ₹11,893.05 crore. As of September 2023, the company’s promoters held a 52.93% stake​​.

MapmyIndia, known for providing services like Digital Maps as a Service (MaaS), Software as a Service (SaaS), Platform as a Service (PaaS), and Internet of Things (IoT), has shown substantial growth in its operations. From FY22 to FY23, the company’s revenue from operations grew by 40%, from ₹200 Crores to ₹281 Crores, accompanied by an increase in profits from ₹87 Crores to ₹107 Crores. This growth has been reflected in the company’s return on equity (ROE) of 19.78% and a return on capital employed (ROCE) of 25.54%, indicating efficient returns on equity and capital employed. The company’s stock, however, is currently trading at a high price-to-equity (P/E) ratio of 95.26 and a price-to-book (P/B) value of 19.67, with an analyst target price suggesting a potential downside of 7% in a year​​​​.

Overall, MapmyIndia’s decision to raise funds via QIP is a strategic move that aligns with its recent financial growth and market performance, and it reflects the company’s ongoing efforts to expand and strengthen its position in the market.



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