MapmyIndia shares correct 14% post strong listing; buy, sell or hold — What should investors do now?

MapmyIndia made a strong debut on the exchanges on Tuesday. Shares of MapmyIndia were listed at a premium of 53.05% to Rs 1581 per share against its issue price of Rs 1,033 on the BSE. The listing helped investors make profit of Rs 548 per share on Tuesday.  

At around 12 pm, shares of digital mapping services corrected 14.17% on its listing price and was still trading higher by 31.6% to Rs 1357 per share against its issue price. The shares were still trading with Rs 324 per share gain.  

As MapmyIndia shares made a stellar debut and has seen some corrections now, what should you do? Should you buy more or make a fresh entry, sell or hold — Here is what experts recommend.  

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Santosh Meena, Head of Research, Swastika Investmart Ltd, said, the company is doing well financially and its business model is sustainable. Despite being purely an OFS, the IPO attracted investors and got subscribed 154 times, he underlined. The analyst said that new edge technologies such as SaaS, PaaS, and MaaS platform providers, are poised to have a bright future.

"On the NSE, the IPO got listed at Rs 1565 per share, which is a 51.50% premium over the issue price of Rs 1033. Investors who applied for the IPO's listing gain should put a stop loss of Rs 1480 and long-term investors, who got allotments, should continue to hold the stock. New investors can also look for buying in the dips," suggested Meena.

The company is one of the leading service providers of digital maps, geospatial softwares to major brands like Apple, ISRO, Niti Aayog, said Manoj Dalmia Founder and Director-Proficient Equities Limited. "The global market sentiments are negative amid the tapering of interest rates and omicron spread. We advise the investors to book profits on the listing date and accumulate on dips later," said Dalmia.

Ravi Singh, Vice President & Head of Research ShareIndia, suggests that investors should hold the shares for long-term, "MapmyIndia is a good bet for long-term investment due to its sustainable business model, "he said.  

We are positive on the stock in the long run on the back of asset light business, strong brands and wide range of products, said Amarjeet Maurya - AVP - Mid Caps, Angel One Ltd. "Every dip in share prices provides buying opportunities to long term investors," he added.  

MapmyIndia is a leading provider of digital maps, geospatial software and location-based lot technologies. It boasts of big clients such as HDFC Bank, Airtel, TVS Motors, Ministry of Finance, ISRO, Facebook, McDonald's, Maruti Suzuki and Mercedes Benz etc.

Meanwhile, the shares of the company at the day's end closed at Rs.1394.55 per share on BSE and at Rs 1375 per share on NSE. The initial public offering was offered at a lower price band of Rs 1000 per share and higher price band of Rs 1033 per equity share.

As per BSE, the total quantity traded stood at 11.41 lakh shares with a delivery quantity percentage of 40.62%. Total Quantity traded at NSE stood at 126.97 lakh shares with a delivery quantity percentage of 33.02%. Total Turnover (BSE+NSE) on Day 1 stood at Rs 2052.8 crore.