Big Block Deal Shakes Up MapmyIndia: PhonePe Sells, Market Reacts

MapmyIndia’s stock took a hit today after PhonePe decided to sell a 5% stake in the company through a block deal worth about Rs 476 crore. The shares were offered at Rs 1,750 each, which is more than 10% lower than yesterday’s closing price. Not surprisingly, MapmyIndia’s stock dropped as much as 9% in early trading before bouncing back a bit.

 

PhonePe owned nearly 19% of MapmyIndia’s parent company, CE Info Systems, before this sale. After the deal, its holding will fall to around 14%. This move looks like PhonePe is cashing in on some of its investment, possibly to free up funds as it prepares for its own IPO.

 

Even with the stock’s dip, MapmyIndia’s business is still looking solid. The company just posted a strong set of numbers for the last quarter, with profits up 28% and revenue climbing 34% year-on-year. Their order book is also growing, especially in the automotive and enterprise sectors.

 

Investors are now keeping an eye on how this change in ownership might affect MapmyIndia in the long run. For now, though, the fundamentals haven’t changed—the company is still growing, even if the share price is feeling some short-term pressure.

 

Sources: Economic Times, Business Standard, CNBC-TV18