MapmyIndia recently made the decision to create a separate entity for its consumer-facing business. This move has raised concerns among shareholders regarding governance.
The announcement on December 1 caused the company's stock price to drop below its listing price. In response, the promoters reassured investors that no company funds would be used for the new venture.
On December 3, Rohan Verma, CEO and Executive Director of MapMyIndia, addressed these concerns by stating that he would personally fund the new consumer business instead of accepting convertible debentures from MapMyIndia. This decision aims to alleviate the concerns of minority shareholders who were dissatisfied with the separation of the B2C venture, which was seen as a promising opportunity by many investors. The market's reaction reflects a negative sentiment among some investors, highlighting the challenges faced by the company in maintaining shareholder confidence during this period of structural changes.