MapmyIndia parent scraps plan to invest in outgoing CEO's company, shares surge (updated)

CE Info Systems

09/12/2024 10:44

(Adds details throughout)
       Dec 9 (Reuters) - CE Info Systems  CEIF.NS , the parent
firm of digital maps provider MapmyIndia, said on Monday that it
has scrapped plans to invest in a company being set up by its
outgoing CEO after receiving investor feedback, with its shares
closing 16% higher.
    MapmyIndia powers Apple Inc's  AAPL.O  maps in the country
and garners 99% of its revenue from providing map-related
services to other businesses. 
    On Nov. 29, CE Info Systems said that CEO Rohan Verma would
establish a mapping services company that caters to customers
directly after stepping down, with the former set to pick up a
10% stake in the new entity and investing an additional 350
million rupees ($4.13 million).
    CE Info Systems did not provide details on the feedback from
its investors.
    "MapmyIndia’s board has reversed its decision to make any
equity or debt investment in the proposed new company," CE Info
said in a statement. 


($1 = 84.7020 Indian rupees)

 (Reporting by Sethuraman NR; Editing by Sonia Cheema)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))