MapmyIndia, a digital mapping company that works with Apple Inc and Amazon.com Inc, created waves in the market as it surged more than 50% on the first day of trading after the startup's initial public offering (IPO).
MapmyIndia, formally named CE Info Systems Ltd, was founded by the husband-and-wife team of Rakesh and Rashmi Verma that witnessed a strong debut on the exchanges on Tuesday, listing with a premium of 52 percent over its issue price.
The husband and wife duo is now worth $586 million after the start-up's IPO.
Founded in 1995, the Delhi-based MapmyIndia is an Indian technology company that builds digital maps, geospatial software, and location-based IoT technologies.
More than two decades ago when Rakesh and Rashmi first came up with the idea, the Vermas spanned India's major cities by foot, charting streets and landmarks. This was way before Google's web cartography came into the picture.
On Tuesday, their hard work paid off as shares of the company listed at Rs 1,565, against the issue price of Rs 1,033 per share.
During the day, the shares of the company pared some of its intra-day gains and settled at Rs 1,375, up over 33 percent from its issue price, NSE data showed.
The son of the founding couple said, "There is huge headroom for growth in our sector and we are very, very excited about the market. We are very hopeful that this entry into the public market will increase our profile."
MapmyIndia, which powers Apple Inc's maps in the country, was valued at 84.66 billion rupees ($1.12 billion) after surging 54% in its market debut on Tuesday, underscoring confidence in the digital map provider's growth prospects.
Investors will continue to favour MapmyIndia as it is debt-free and has strong growth prospects, Sneha Poddar, assistant vice-president of retail research at Motilal Oswal Financial Services said.
(Reuters inputs)
