MapmyIndia retains consumer business, shares soar

CE Info Systems Ltd., which operates under the brand name MapmyIndia, has decided not to proceed with its previously announced plan to separate its consumer business. The announcement was made on Monday through a regulatory filing.

The company, a provider of digital maps to corporations including Apple Inc (NASDAQ:AAPL ). and BMW (ETR:BMWG ) AG, stated that it will maintain ownership of its Mappls brand and associated applications.

Following this revelation, the company's stock experienced a significant increase, soaring by as much as 18.4% in late trading, reaching its highest point in almost a month. This rally offset the 12% decrease that occurred in the days after the initial announcement on November 29.

MapmyIndia had faced considerable opposition from its minority shareholders and proxy advisory firms over its initial decision to spin off a portion of its burgeoning retail segment into a separate entity. According to the original plan, CE Info Systems would have retained only a 10% stake in the new entity, with the majority stake going to Rohan Verma, the company's Chief Executive Officer.

The initial proposal also included the provision of 350 million rupees in additional funding to the new entity through compulsorily convertible debentures. However, the company has since reversed its decision and will no longer pursue the carve-out strategy.

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Source: Investing.com