MapmyIndia, a key player in India's digital mapping and location services sector, recently came under scrutiny from investors after its management announced its decision to transfer its business-to-consumer (B2C) operations to a new venture led by CEO Rohan Verma. However, just two days after this decision, MapmyIndia announced that it would withdraw its planned investment of Rs 35 crore in Rohan Verma's new B2C venture after feedback received from minority shareholders.
Promoters have misunderstood that Rs 35 crore investment to support the B2C business is not the concern for minority shareholders. On the contrary, it is the 90 percent promoter ownership of a business that was incubated and will derive all resources from the listed company that is the concern. By moving operations away from MapmyIndia’s direct oversight, the company may lose out on future growth opportunities in a rapidly evolving market.
The company’s failure to make an official exchange announcement regarding its withdrawal also raises concerns about its compliance with SEBI regulations.
Our MD and CEO, Mr. Shriram Subramanian, and Lead Analyst Amrita Agarwala, wrote an article on Moneycontrol discussing the corporate governance issues related to MapmyIndia’s recent decisions.
Read the full article here:
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