Qualcomm to exit MapMyIndia with huge profit

Qualcomm Ventures invested $5 million in the company about 13 years ago

The price band for the offer has been fixed at Rs 1,000-Rs 1,033 per equity share

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

According to its Red Herring Prospectus, Qualcomm Ventures invested $5 million in the company about 13 years ago, at an average share price of about Rs 52.20 per share. The price range for the offer has been set at Rs 1,000-Rs 1,033 per equity share, giving Qualcomm Ventures a 20-fold return.

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

The initial public offering (IPO) of the provider of digital maps, geospatial software, and location-based IoT technologies will begin on December 9 and end on December 13.

Zenrin, a Japanese map publisher, and Rashmi Verma, a promoter co-founder, are among the other shareholders who will sell their shares. After the IPO, MapMyIndia’s founders Rakesh Verma and Rashmi Verma will still be the majority owners, with a 53 percent stake 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.

During a presentation on Monday, MapMyIndia stated that it will consider augmenting its products, investing in building a broader technology stack, expanding business reach in India and abroad, pursuing selective acquisitions and investments to enter new business segments and markets, and attracting highly skilled talent.

According to its CEO, Verma, the company is firmly focused on the India market, where it has the majority of the business-to-business and business-to-consumer market share for mapping services.

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