The initial public offering (IPO) of MapMyIndia, which witnessed strong interest from shareholders from day 1, is heading towards a strong closing on Monday. On the last day of bidding, the company continued to witness strong demand from investors.ADVERTISING
As of 1 pm on the final day, MapMyIndia IPO was subscribed nearly 27 times, with strong response in all categories. The strong response to the public issue indicates that the shares of the company will make a bumper debut on the primary markets.
Several brokerages have given thumbs up to the IPO of MapMyIndia, owned by CE Info Systems, based on the company’s future growth potential and profitable business model. The grey market premium also indicates a superb listing for the company on the stock exchanges on December 21.
MAPMYINDIA GMP
Latest information suggests that the MapmyIndia IPO GMP is Rs 1,020 or over 98 per cent to its issue price of Rs 1,039. This means the stock will list at approximately Rs 2,050 if the GMP does not fall.
It may be noted that the GMP only gives an indication of how a company is expected to list on the stock exchanges. However, the GMP does suggest that the stock is in for a bumper listing on the BSE and NSE.
MapMyIndia set a price band of Rs 1,000-1,039 per share for the IPO. The IPO is entirely an offer for sale (OFS) of up to 10,063,945 equity shares by existing shareholders and promoter.
As mentioned earlier, several brokerages had given a ‘subscribe’ rating to the IPO, due to the company’s strong financial position, profitable business model and strong cash flows.
Brokerage Anand Rathi said in a note that MapMyIndia is all set to capitalize on the exponential growth opportunity of being the market leader, adding that it also has an early mover advantage and a profitable business model with a consistent financial track record and strong cash flow.