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  5. CE Info Systems stock in focus after legal notice to IPO-bound Ola Electric for 'copying' MapmyIndia data

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CE Info Systems stock in focus after legal notice to IPO-bound Ola Electric for 'copying' MapmyIndia data

Upstox
By Upstox News Desk

3 min read | Updated on July 30, 2024, 11:01 IST

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SUMMARY

The MapmyIndia owner has alleged that Ola copied data from the company's map for an "illegal motive for unjust commercial gains". This comes days after Ola founder Bhavish Aggarwal claimed that the company has exited Google Maps in a move to save ₹100 crore annually.

Stock list

MAPMYINDIA
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CE Info Systems recently gained by up to 10% after Budget 2024 proposed proposal GIS-based mapping of land records

CE Info Systems recently gained by up to 10% after Budget 2024 proposed GIS-based mapping of land records

The shares of digital navigation firm CE Info Systems, which owns MapmyIndia, will remain in focus during the trading session on Monday, July 30.
The stock has come under the spotlight as the company has reportedly sued Ola Electric, the IPO-bound arm of cab aggregator Ola, for allegedly copying its data and reverse-engineered its app to make Ola Maps.

The notice was sent to Ola after talks failed, a source privy to the development told news agency PTI. The development could not be independently verified as CE Info Systems is yet to issue a statement.

"As of now, a legal notice has been sent to Ola. It has been sent after discussions failed," PTI quoted the source as saying.

An Ola Electric spokesperson, while speaking to the news agency, dismissed the allegations reportedly levelled by CE Info Systems.

"We would like to state unequivocally that these allegations are false, malicious and misleading. Ola Electric stands by the integrity of its business practices. We will suitably respond to the notice shortly," the spokesperson said.

The development comes at a time when Ola Electric is in the process to launch an IPO to raise around ₹6,100 crore. The offer will open for subscription on August 2.

Also Read: Ola Electric IPO: Check the company’s financials, price band, listing date

CE Info Systems in the legal notice has reportedly said that Ola Electric has breached an agreement signed with the digital navigation firm in June 2021.

MapmyIndia owner has alleged that Ola copied data from the company's map for an "illegal motive for unjust commercial gains".

The development comes after Ola founder and CEO Bhavish Aggarwal on social media platform X claimed that the company has exited Google Maps which used to cost the company ₹100 crore a year and moved to in-house developed Ola Maps.

Aggarwal has been vociferous about building its own indigenous AI and cloud platform to offer start-ups better price and services compared to foreign tech giants in the cloud space.

CE Info System shares

On Monday, the MapmyIndia-parent last traded at ₹2,358.1 apiece on the NSE, down 1.72% as against the last closing price.

Year-to-date, the stock has risen by around 22%, whereas, the surge has been sharper at about 57% in the last 12 months.

The stock, in recent period, was in focus after Google slashed its Maps platform pricing by up to 70% earlier this month. This led to CE Info Systems plunging by around 7% on the bourses. However, the shares gained by around 10% following the Union Budget 2024, as the government proposed GIS-based mapping of land records.
With PTI inputs

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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