Key Highlights
- PhonePe plans to sell approximately a 5% stake in CE Info Systems for ₹476.2 crore via block deal today.
- Block deal is at ₹1,750 per share, 10.4% discount, reducing PhonePe’s holding to ~13.7%.
PhonePe is reportedly looking to sell a 5% stake in the company today at a floor price of Rs 1,750 per share, which represents a 10.4% discount to Wednesday's closing price. At the end of March, Phonepe owned 1,01,97,966 shares of CE Info Systems, representing an 18.74% stake. The deal size for today's block is estimated to be Rs 476.20 crore.
CE Info Systems reiterated last month its FY28 revenue target of Rs 1000 crore or more, with 35% Ebitda margins. This is supported by a robust order book, which is expected to exceed Rs 2,000 crore by April 2028.
MapmyIndia expects auto attach rates to rise to 23% in FY28. According to a recent note by JM Financial, this could imply volumes of 54 lakh (at approximately 90% market share).
"In SEA, MMI sees a similar opportunity to India, with the TLT JV aiming for a 50/30 percent market share in map data/software by 2030. The JV is creating a unified map for the region, lowering implementation costs for OEMs. MMI's Enterprise strategy focuses on verticalization and increasing wallet share," according to JM Financial.
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CE Info Systems is also looking to expand into SEA. MDT, the government's business subsidiary, is focused on scalable, IP-led solutions delivered through an integrated platform while maintaining execution discipline, it added, recommending a 'Buy' and a 12-month target price of Rs 2,620.
"The company's strong order book, high intellectual property ownership, and presence in high-growth areas such as ADAS, EVs, geospatial AI, and digital twins ensure long-term visibility and scalability. We left our estimates and rating unchanged. We currently have a REDUCE rating with a target price of Rs 1,948, valuing it at 40 times the March 2027 estimate," Centrum Broking stated.
Centrum Broking stated that the company's growth will be fueled by a doubling of attach rates in automotive, a fivefold increase in client expansion in enterprise, and deeper penetration in the public sector with a multi-product, integrated stack.
