The Rs 1,039.61 crore IPO of CE Info Systems (MapmyIndia) kicked off today

"The company aims to develop and innovative its technological capabilities, with a broader stack of software products," the brokerage said while assigning a subscribe rating on the issue for the long term on the back of its high growth potential, increasing usage of new technology platforms by customers, minimal competition and valuation comfort.

Meanwhile, Arihant Capital, which has a subscribe rating on the issue, said that at the upper range of price band, the issue is priced at a P/E multiple of 94x based on the FY21 EPS. The company has strong fundamentals and its profitability is expected to inch up going further, it added.

It is the market leader in the digital maps and geospatial software industry, effectively creating an entry barrier against potential competition. Its long standing relationships with high value clients not only generate repeat sales, but also encourage cross-selling and up-selling," it said.

MapmyIndia has certain advantages as its digital maps and other solutions are localised for the challenging Indian geography and are extensive in terms of coverage.

50 per cent of the net issue is reserved for qualified institutional buyers (QIBs), whereas non-institutional buyers will have 15 per cent of shares allocated for them. Retail portion has been fixed at 35 per cent of the offer.