ipo: Qualcomm Ventures to exit MapMyIndia with blockbuster returns

Qualcomm Ventures, the investment arm of chipmaker Qualcomm Inc, will exit MapMyIndia with blockbuster returns after the Indian digital-map provider goes public with a Rs 1,040 crore initial public offering (IPO) this week.

Qualcomm Ventures invested $5 million in the company about 13 years ago, at an average share price of about Rs 52.20 per share, according to its Red Herring Prospectus. The price band for the offer has been fixed at Rs 1,000-Rs 1,033 per equity share, which gives Qualcomm Ventures a return of about 20 times.

MapMyIndia will sell 18.9% of the equity shares of the firm in its offer for sale (OFS) issue, valuing the company at Rs 5,500 crore.

The IPO of the provider of digital maps, geospatial software and location-based IoT technologies will open on December 9 and close on December 13.

Other shareholders who will sell their stake include Japanese map publisher Zenrin and promoter co-founder Rashmi Verma. MapMyIndia will still be majority owned by its founders Rakesh Verma and Rashmi Verma after the IPO, as they will have about 53% shareholding in the company.

“Fundamentally we are a highly profitable, cash generating company. We don’t need to raise fresh funds. We want to go public because it gives our customers more comfort. Since we didn’t need to raise new funds we have to constitute an OFS and have a sizable float in the market,” said CEO Rohan Verma.

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MapMyIndia said it will look at augmenting its products, invest in building a broader technology stack, expand business reach in India and abroad, pursue selective acquisitions and investments to enter new business segments and markets, and attract highly skilled talent, it said during a presentation on Monday.

The company is firmly focused on the India market, where it has a bulk of the business-to-business and business-to-consumer market share for mapping services, its CEO Verma told ET last month.

In February, the government had eased regulations governing the acquisition and application of geospatial data, allowing private firms to use high-precision satellite imagery of one metre and below. According to the policy, overseas firms such as Google Maps can also source such data from Indian companies’ local servers, though they cannot themselves own that data.

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