(Reuters) – CE Info Systems, 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 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)
