CE Info Systems Ltd. (MapmyIndia) Not Separating Consumer Business

CE Info Systems Ltd., operating as MapmyIndia, has decided not to move forward with its plan to separate its consumer business, as announced in a regulatory filing on Monday.

The company, which provides digital maps to clients such as Apple Inc. (NASDAQ:AAPL) and BMW (ETR:BMWG) AG, will retain ownership of its Mappls brand and related applications.

This news led to a notable 18.4% surge in the company's stock during late trading, reaching its highest level in nearly a month, effectively mitigating a 12% drop that followed the initial November 29 announcement.

MapmyIndia faced significant pushback from minority shareholders and proxy advisory firms regarding its original decision to spin off part of its growing retail segment into a new entity. Under the initial proposal, CE Info Systems was to keep only a 10% stake in the new entity, with the majority share allocated to CEO Rohan Verma.

The original plan also included a provision to provide 350 million rupees in extra funding to the new entity through compulsorily convertible debentures. With the recent revelation, the company has reversed its decision and will no longer pursue the carve-out strategy.

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