Shares of CE Info Systems, the parent company of MapmyIndia, soared by 16% after the company reaffirmed its commitment to its core B2B and B2B2C operations, which generate over 99% of its revenue. The company will continue to leverage its retail brand, Mappls, while exploring new B2C opportunities.
In a strategic move, the board reversed a prior decision to invest in a new equity/debt venture, aligning efforts to maximize shareholder value and focus on achieving its business objectives.
Recently, the company announced that its CEO, Rohan Verma, will step down to focus on an independent venture, in which MapMyIndia will hold a 10% stake.
In an interview with CNBC-TV18 on Tuesday, December 3, the management of CE Info Systems revealed that Verma would use his personal funds to run the consumer business. MapMyIndia is set to invest ₹35 crore in the new venture through Compulsory Convertible Debentures (CCDs). The 10% stake in MapMyIndia will be valued at ₹10 lakh.
The management also stated that the B2C company will continue its growth trajectory, with an annual cash burn rate of ₹30 crore. However, they emphasized that MapMyIndia will not provide financial support to the new business.
MapmyIndia shares showed volatility today, opening at ₹1,649.95 before hitting a high of ₹1,935.00 and a low of ₹1,636.40. The stock remains under its 52-week high of ₹2,747.85 but above the 52-week low of ₹1,513.00.
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