So I appreciate the management taking the con call and elaborating on the decision making process here -
My understanding is that the mid-term losses of the D2C business were looked at unfavourably by larger institutional investors and the promoters have decided the best course of action would be to hive of those losses to a separate entity. As to why they care what these investors think I dont know.
The idea is that the new entity would collect data and do marketing for CE Info I guess and the hope is that CE Info ownership in the new entity if a success would be a multibagger. Also the profit and loss of the company would be cleaned up over the next few years and this might make CE Info stock price rise quicker.
What I still don’t understand is their assertion that MapMyIndia was always a B2B company and doesnt have the B2C DNA. If that’s the case then why was the Mapples app was ever started in the parent company?
There is still a lof of uncertainty however after the con call I am unsure if management dishonesty or greed is the reasoning behind this decision making… Only time will tell I guess.
However as an investor in CE Info I have decided to continue holding my position. I do not want to add more a the time, but at the same time selling or cutting holding at the time when fears might be overblown seems hasty to me.