Rohan Verma Steps Down as MapMyIndia CEO, Stock Dips

Shares of C.E. Info Systems-owned MapMyIndia declined by 8% on Tuesday, reaching ₹1,546.20 on the BSE, nearing its 52-week low of ₹1,545 from November 22, 2024.

This drop followed an 11% decline over two days, extending a 25% fall in just 16 trading days since November 8. Meanwhile, the BSE Sensex was up 0.7% during the same session.  

The steep decline followed the announcement that Rohan Verma, CEO and Executive Director of MapMyIndia, will relinquish his executive role to establish a new business-to-consumer (B2C) venture. In this venture, Verma will hold a 90% stake, while MapMyIndia will retain 10% equity and contribute ₹35 crore through Compulsorily Convertible Debentures (CCDs). The CCDs are set to convert to equity either within ten years or at a 25% discount to any third-party valuation, whichever is earlier.  

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MapMyIndia, a leading player in deep-tech digital maps, geospatial software, and location-based IoT products, has been known for its offerings under the Mappls MapmyIndia brand. It caters to businesses, government organizations, automotive manufacturers, and consumers through its digital maps, software solutions, and IoT platforms.  

According to JM Financial Institutional Securities, the divestiture of its B2C segment could benefit MapMyIndia by allowing it to concentrate on its B2B and B2B2C initiatives, particularly in IoT and drone technologies. This strategic move is expected to improve the company’s profit margins and return on capital employed . Analysts also noted that the new B2C venture could seek external funding thereby reducing financial obligations for the parent company.  

B2C Model Faces Risks

Despite these positives, analysts remain cautious about the unproven nature of the location-based B2C business model, particularly in a market where Google Maps dominates with over 80% market share. The minority stake in the new B2C venture also means MapMyIndia won't consolidate potential losses from the entity, which could persist in the foreseeable future.  

Investors have expressed concerns over Rohan Verma’s departure, which some perceive as a potential leadership vacuum. While MapMyIndia has assured stakeholders of the depth of its leadership team and the continued guidance of Chairman Rakesh Verma the relatively untested leadership cadre has added to investor uncertainty.  

Analysts, however, are optimistic about the company's improved focus on its B2B segment. They have raised Financial year 26 and 27 margin estimates by 200 basis points and forecast a 5 percent uplift in earnings per share. They believe the current correction in stock prices combined with expectations of a stronger second half presents an attractive buying opportunity.

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