CE Info Systems Ltd, the parent company of MapMyIndia, on Friday gained sharp momentum as the trading session approached closure. The stock soared 18.12 per cent to hit a day high of Rs 1,945. The spike came as the company's Board reversed its decision to invest in the new business, set up by CMD Rakesh Verma's son Rohan Verma.
"At its earlier meeting on November 29, 2024, the Board had taken the decision to invest Rs 10 lakh to acquire a 10 per cent stake at a face value of Rs 10 per share and further invest Rs 35 crore in the form of Compulsorily Convertible Debentures (CCD's) in a proposed company to be formed by Rohan Verma. The Board made the above decision after due deliberation keeping in mind the best interest of the Company. After receiving investor feedback, the Board has re-evaluated its decisions," it stated in a BSE filing.
"The Board and Management believe that the focus of the Company should remain on the B2B and B2B2C sectors which constitute over 99 per cent of revenues and continue to represent a significant growth opportunity for the foreseeable future. MapmyIndia is a market leader in these segments with a strong track record of growth and profitability and will continue to invest in these segments for future growth. MapmyIndia's retail brand, Mappls, and the associated apps continues to be held by the Company. MapmyIndia's Board has reversed its decision to make any equity or debt investment in the proposed new company," it further stated.
Rakesh Verma (CMD at MapmyIndia) and Rohan Verma (CEO & Executive Director at MapmyIndia), in a joint release, said, "We believe that the decisions taken by the Board on November 29, 2024 and today, December 9, 2024 both are taken in the best interest of the Company and all its shareholders including minority shareholders. The Company and the Board believes it is important to ensure that the Company goes above and beyond to allay any apprehensions."
We remain on track to achieve our stated goals as articulated in our Investor Day in June 2023, they added.
MapMyIndia's stock saw high trading volume on BSE today as around 1.35 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 27,000 shares. Turnover on the counter came at Rs 24.61 crore, commanding a market capitalisation (m-cap) of Rs 10,539.85 crore.
"The stock has moved up significantly. Near-term support will be at Rs 1,800-1,820 level. Immediate resistance will be at Rs 1,970. For fresh buying, one should wait for the counter to decisively cross the Rs 1,970 zone. Then, one can play for an expected target of Rs 2,200 with stop loss placed below Rs 1,900," Brijesh Singh of StockAxis told Business Today.
As of September 2024, promoters held a 51.67 per cent stake in the company.