Please refer to important disclosures at the end of this report
1
C.E. Info systems limited is data and technology products and platforms
company, offering proprietary digital maps as a service (“MaaS”), software as a
service (“SaaS”) and platform as a service (“PaaS”). Having pioneered digital
mapping in India in 1995, It has earned market leadership position in this
industry and built a strong moat by capitalizing on early mover advantage,
developing proprietary and integrated technologies, full stack product offerings,
continuous innovation and robust sustainable business model.
Positives: (a) Pioneers of digital mapping in India having an early mover
advantage. (b) Leading the B2B and B2B2C market for digital maps and
location intelligence in India. (c) Proprietary technology and network effect
resulting in competitive edge. (d) Independent, global geospatial products and
platforms company with strong data governance.
Investment concerns: (a) Downturn trend or disruptions in the industries where
company’s customers operate. (b) Disruption in automotive sector, key market
for the company. (c) Inability to maintain or update map database or errors in
our map database. (d) Inability to protect intellectual property (“IP”) or any third-
party claims in relation to infringement of intellectual property rights.
Outlook & Valuation: MapmyIndia being a pioneer, has certain advantages as
its digital maps and other solutions are localized for the challenging Indian
Geography and are extensive in terms of coverage. There is scope of further up
selling or cross selling while the maps and platform are constantly updated with
validated feedbacks which can create network effect. Despite the impact of
Covid on key customer market (Automobile & Mobility Tech) in FY21, the
company was able to post revenue growth of ~3% and the margin profile is
strong which would be supported with growing scale going ahead. At the upper
end of the price band, the company is commanding price to sales multiple of
~36x on FY21 revenue and 28x based on TTM Revenues. Considering the
company’s leadership position in India, client base and benefits of network
effect, healthy margins and return profile as well strong cash conversion, we
recommend SUBSCRIBE on the issue from a long-term perspective.
SUBSCRIBE
Issue Open: Dec 09, 2021
Issue Close: Dec 13, 2021
Offer for Sale: `1040 cr
QIBs 50% of issue
Non-Institutional 15% of issue
Retail 35% of issue
Promoters 53.7%
Others 46.3%
Fresh issue: --
Issue Details
Face Value: `2
Present Eq. Paid up Capital: `10.6cr
Post Issue Shareholding Pattern
Post Eq. Paid up Capital: `10.6cr
Issue size (amount): `1040 cr
Price Band: `1000-1033
Lot Size: 14 shares and in multiple thereafter
Post-issue mkt. cap: * `5,324 cr - ** `5,500 cr
Promoters holding Pre-Issue: 61.7%
Promoters holding Post-Issue:53.7%
*Calculated on lower price band
** Calculated on upper price band
Book Building
C.E. Info systems limited
C.E. Info systems limited | IPO NOTE
December 08, 2021
Exhibit 1: Key Finance
Y/E March (` cr)
FY2019
FY2020
FY2021
Q2FY21
Q2FY22
Net Sales
135.3
148.6
152.5
55.2
100.0
% chg
-
9.9
2.6
-
81.3
Net Profit
33.6
23.2
59.4
17.9
46.8
% chg
-
-30.9
156.2
-
161.8
EBITDA (%)
18.9
19.7
33.7
20.1
45.2
EPS (Rs)
6.3
4.4
11.2
3.4
8.8
P/E (x)
163.9
237.1
92.5
-
-
P/BV (x)
19.3
18.5
15.4
-
-
ROE (%)
11.8
7.8
16.6
-
-
ROCE (%)
12.5
8.5
17.1
-
-
EV/EBITDA
211.0
183.3
102.7
-
-
EV/Sales
39.8
36.2
34.6
-
-
Source: Company, Angel Research
C.E. Info systems limited| IPO Note
Dec 08, 2021
2
Company background
C E Info Systems Limited (“MapmyIndia”) was incorporated on February 17, 1995.
MapmyIndia provides products, platforms, application-programming interfaces
(“APIs”) and solutions across a range of digital map data, software and IoT. The
company primarily service enterprise customers across 3 major categories, i.e. (i)
corporate, (ii) automotive, and (iii) government and their customers in turn serve
the larger community of end users.
Company earns revenue in form of subscription fees, royalties or annuities for
licenses and usage rights to their proprietary digital MaaS, PaaS and SaaS
offerings. Some of their key customers include PhonePe, Flipkart, Yulu, HDFC
Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress & Goods and Service Tax
Network (“GSTN”).
Issue details
The IPO is made up of offer for sale of 10,063,945 equity shares aggregating up
to ₹1,039.61 Cr from promoter & investor shareholders.
Pre and post IPO shareholding pattern
No of shares
(Pre-issue)
%
(Post-issue)
%
Promoter
32,856,235
61.7
28,607,446
53.7
Investors and other selling sh
9,557,113
18.0
3,748,305
7.0
Public (others)
10,829,619
20.3
20,887,216
39.2
Total
53,242,967
100.0
53,242,967
100.0
Source: Company, Angel Research & RHP.
Objectives of the Offer
To carry out the offer for the sale of 10,063,945 equity shares.
Achieve the benefits of listing the equity shares on the stock exchanges
Key Management Personnel
Rakesh Kumar Verma is the Chairman and Managing Director of the Company.
He received bachelor’s degree in mechanical engineering (hons.) from the Birla
Institute of Technology and Science, Pilani, and master’s degree of business
administration from the Eastern Washington University, U.S.A. He has in the past
served as a member of the Government of India’s Planning Commission’s
National GIS Committee.
Rohan Verma is the Whole-time Director and the CEO of the Company. He has
experience as an entrepreneur in the digital mapping, geospatial technologies and
automotive mobility technologies. He is an independent director on the board of
directors of Cholamandalam Investment and Finance Company (listed on BSE and
NSE), the financial services arm of Murugappa Group.
Rakhi Prasad is a Non-executive Director of the Company. She holds a bachelor's
degree of science in computer science from the University of Michigan and a
bachelor’s degree of arts in economics honours from the Lady Shri Ram College,
University of Delhi.
Shambhu Singh is an Independent Director of the Company. He holds a master’s
degree in economics from the Patna University. He is a retired IAS officer.
C.E. Info systems limited| IPO Note
Dec 08, 2021
3
Exhibit 1: Profit & Loss Statement
Y/E March (` cr)
FY2019
FY2020
FY2021
Q2FY22
Total operating income
135.3
148.6
152.5
100.0
% chg
-
9.9
2.6
81.3
Total Expenditure
109.8
119.3
101.1
54.8
Cost of materials consumed
17.2
13.4
13.3
7.4
Purchase of stock in trade
1.1
1.1
2.2
0.9
Change in inventory
1.6
0.1
0.8
0.2
Employee benefits expense
50.8
64.3
54.0
32.6
Other expenses
39.1
40.4
30.7
13.6
EBITDA
25.5
29.4
51.4
45.3
% chg
-
15.1
75.1
307.7
(% of Net Sales)
18.9
19.7
33.7
45.2
Depreciation& Amortisation
9.2
9.8
9.9
3.9
EBIT
16.4
19.6
41.5
41.4
% chg
-
19.7
112.0
558.2
(% of Net Sales)
12.1
13.2
27.2
41.4
Finance costs
2.6
2.8
2.6
1.1
Other income
28.1
14.8
39.8
22.6
(% of Sales)
20.8
10.0
26.1
22.5
Recurring PBT
41.8
31.6
78.8
62.8
% chg
-
-24.4
149.3
164.9
Tax
8.2
8.4
19.3
16.1
PAT
33.6
23.2
59.4
46.8
% chg
-
-32.4
169.8
153.3
(% of Net Sales)
24.8
15.6
39.0
46.8
Basic & Fully Diluted EPS (Rs)
6.3
4.4
11.2
8.8
Source: Company, Angel Research
C.E. Info systems limited| IPO Note
Dec 08, 2021
4
Exhibit 2: Consolidated Balance Sheet
Y/E March (` cr)
FY2019
FY2020
FY2021
Q2FY22
SOURCES OF FUNDS
Equity Share Capital
132.8
132.8
132.8
8.0
Other equity (Retained Earning)
152.4
164.9
225.2
398.2
Non-Controlling interest
-
-
-
-
Shareholders’ Funds
285.2
297.7
358.0
406.2
Total Loans
-
-
-
-
Other liabilities
24.2
21.8
18.5
16.9
Total Liabilities
309.4
319.5
376.5
423.1
APPLICATION OF FUNDS
Property, plant and equipment
5.8
8.2
6.4
6.2
Investment properties
8.2
8.0
7.9
7.8
Right of use assets
22.8
19.6
15.7
13.7
Other intangible assets
7.5
4.7
2.8
2.5
Current Assets
157.6
171.3
269.2
243.5
Inventories
3.5
4.4
2.8
2.5
Investments
98.2
88.5
154.2
116.4
Trade receivables
23.9
31.1
28.3
25.8
Cash and cash equivalents
8.2
15.1
33.6
61.4
Other bank balances
13.1
17.1
33.6
14.7
Others
8.3
13.0
15.6
18.1
Other current assets
2.3
2.1
1.2
4.4
Current Liability
29.9
38.3
50.4
42.9
Net Current Assets
127.8
133.0
218.8
200.6
Other Non-Current Asset
137.4
146.1
124.8
192.3
Total Assets
309.4
319.5
376.5
423.1
Source: Company, Angel Research
C.E. Info systems limited| IPO Note
Dec 08, 2021
5
Exhibit 3: Consolidated Cash flows
Y/E March (` cr)
FY2019
FY2020
FY2021
Q2FY22
Operating profit
43.4
40.0
58.0
46.6
Net changes in working capital
-0.4
-1.0
40.5
-16.8
Cash generated from operations
43.0
39.0
98.5
29.8
Direct taxes paid (net of refunds)
-16.2
-12.3
-15.2
-11.9
Net cash flow operating activities
26.8
26.7
83.3
17.9
Proceeds from sale of investments
287.1
184.3
278.1
204.0
Purchase of investments
-298.2
-186.1
-324.6
-216.4
Interest received on deposits
0.4
7.8
4.7
3.8
Dividend received
2.6
0.6
0.1
0.0
Purchase of property (including
capital advances)
-3.3
-5.5
-2.4
-1.4
Sale of Property, plant and equipment
0.0
-
-
-
Others
-7.8
-2.6
-15.3
19.3
Cash Flow from Investing
-19.1
-1.6
-59.3
9.3
Receipt on issue of share
-
-
-
3.7
Repayment of borrowings
0.0
-0.1
-0.3
-0.6
Proceeds from borrowings
-
1.0
-
-
Dividend paid
-
-11.0
-
-
Payment of lease liabilities
-4.0
-6.3
-5.0
-2.9
Others
-0.2
-2.3
-0.1
0.0
Cash Flow from Financing
-4.2
-18.8
-5.4
0.2
Inc./(Dec.) in Cash
3.4
6.4
18.6
27.5
Opening Cash balances
4.81
8.25
15.07
33.63
Exchange Effect
0.00
0.45
0.00
0.27
Closing Cash balances
8.3
15.1
33.6
61.4
Source: Company, Angel Research
C.E. Info systems limited| IPO Note
Dec 08, 2021
6
Key Ratios
Y/E March
FY2019
FY2020
FY2021
Valuation Ratio (x)
P/E (on FDEPS)
163.9
237.1
92.5
P/CEPS
128.8
166.8
79.3
P/BV
19.3
18.5
15.4
EV/Sales
39.8
36.2
34.6
EV/EBITDA
211.0
183.3
102.7
Per Share Data (Rs)
EPS (Basic)
6.3
4.4
11.2
EPS (fully diluted)
6.3
4.4
11.2
Cash EPS
8.0
6.2
13.0
Book Value
53.6
55.9
67.2
Returns (%)
ROE
11.8
7.8
16.6
ROCE
12.5
8.5
17.1
Turnover ratios (x)
Receivables (days)
64
76
68
Inventory (days)
9
11
7
Payables (days)
12
15
11
Working capital cycle (days)
61
72
64
Source: Company, Angel Research
C.E. Info systems limited| IPO Note
Dec 08, 2021
7
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