BENGALURU (Reuters) -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.
Shares of the company, also known as CE Info Systems, opened at 1,565 rupees before rising as high as 1,590 rupees, compared with the IPO price of 1,033 rupees. The stock pared some of the gains to trade 35.7% higher at 1,403 rupees by 0724 GMT.
"Going forward, as more companies adopt digitalisation and with the increasing penetration of ecommerce, MapmyIndia would benefit more because it has a first-mover advantage, having created a strong entry barrier for itself," said Sneha Poddar, assistant vice-president of retail research at Motilal Oswal Financial Services.
Investors will continue to favour MapmyIndia as it is debt-free and has strong growth prospects, she added.
Last week, profit-making MapmyIndia's initial public offering (IPO) was subscribed a stunning 154.71 times with bids worth 1.13 trillion rupees. The float, which comprised solely an offer for sale by shareholders, had aimed to fetch 10.40 billion rupees.
Barring lacklustre performances by a few large players like Paytm, Indian tech companies have seen strong subscriptions and trading debuts this year as stock markets soared amid abundant liquidity.
Shares of MapmyIndia, which counts Qualcomm Inc and Walmart Inc-backed PhonePe among its early investors, also benefited from Tuesday's rebound in broader equities from recent declines on fears over the Omicron COVID-19 variant.
MapmyIndia's consolidated profit more than doubled to 594.3 million rupees for the year ended March 31 from a year ago, its prospectus https://bit.ly/3mpkyTL showed.
It provides services to more than 5,000 clients like Mercedes Benz, Maruti Suzuki and Bharti Airtel, and partners with government-run Indian Space Research Organization and the Indian Meteorological Department.
($1 = 75.6100 Indian rupees)
(Reporting by Rama Venkat and Chris Thomas in Bengaluru; Editing by Subhranshu Sahu and Devika Syamnath)