By Dhirendra Tripathi
Investing.com – MapMyIndia-owner CE Info Systems ' (NS:CEIF) rallied sharply on its stock market debut in Mumbai Tuesday, bringing a sigh of relief to investors Tuesday after big disappointments in some recent IPOs.
The stock listed at 1581 rupees (around $20) on the BSE, a premium of 53% to the issue price of 1,033 rupees. It touched a high of 1586.85 rupees, before closing above 1394 - a gain of 35%.
MapMyIndia provides data and technology products, offering proprietary digital maps as a service. It is one of the few companies offering software products to have listed in a country known more for its IT services.
The listing was keenly awaited on two counts – one, that it came a day after the markets were routed Monday, and two, that it followed a spate of recent offerings that have rarely traded above their issue prices and are now down by 30%-40%.
The highest-profile example of that trend has been One 97 Communications Ltd (NS:PAYT), the Softbank-backed owner of payments fintech Paytm.
Paytm started as a simple wallet but has expanded into a payments provider that now also provides mutual funds services, brokerage and lending.
One 97 shares were issued at 2150 rupees and have never traded above that. Since their November 18 listing, the shares have lost 39% of their value, inviting allegations of mispricing and denting investor confidence in primary issues.