Shares of CE Info Systems, the parent company of MapMyIndia, fell sharply by nearly 9% on 12 June after a large block deal involving a 5.3% stake spooked investors.
According to reports, 28.6 lakh shares changed hands at an average price of ₹1,813.7 per share, translating to a total deal value of around ₹518.72 crore. While the identities of the buyer and seller remain unconfirmed, market sources have pointed to PhonePe as the likely seller.
CNBC-TV18 had earlier reported that the digital payments major was looking to offload a 5% stake in CE Info Systems, eyeing proceeds of around ₹476.20 crore from the sale.
PhonePe currently holds an 18.7% stake in MapMyIndia, as per the company’s latest shareholding data for the March quarter. But it wasn’t just the sale itself that caught attention, it was the timing. The transaction comes as PhonePe is gearing up for its own highly-anticipated initial public offering.
CEO Sameer Nigam recently remarked that the company believes “now is the right time” to go public, adding to speculation that the stake sale was a strategic move to streamline operations ahead of the listing.
Meanwhile, the block deal in the counter also tipped off a spike in trading volumes. As many as 52 lakh shares of MapMyIndia changed hands on the bourses thus far, a meteoric spike from the one-month daily traded average of 83,000 shares.
As for its financial performance, MapMyIndia had a strong end to FY24. The company posted a 28.2% year-on-year rise in net profit to ₹48.6 crore for the March quarter. Revenue also saw a healthy 34.2% growth, coming at ₹144 crore. However, operational performance came under slight pressure, Ebitda margin eroded to 34.4% from 37% a year earlier.
