Shares of CE Infosystems, the parent company of MapMyIndia were down 4% on Wednesday after the company's co-founder and promoter Rakesh Kumar Verma sold some of his stake.

What Happened: On Wednesday, a block deal worth ₹142.60 crore was executed on the bourses at ₹2,332 per share. Rakesh Kumar Verma confirmed in an interview with CNBC-TV18 that he was the seller. 

Around 6.1 lakh shares which make up 1.1% stake in the company changed hands in the deal. 

Rakesh Kumar said he sold the shares to fund his philanthropy activities. He added that the promoters won't sell any further stake in the company.

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Rakesh Kumar was likely to sell a stake through a block deal and JM Financial would be the broker for the deal, CNBCTV18 reported on Tuesday, citing sources.

According to the latest shareholding pattern of the company, the promoters held 52.91% stake in the company and Rakesh Kumar Verma had 42.84% stake till March 2024. 

In a regulatory filing on Wednesday, the company also confirmed that Verma is looking to sell up to 5 lakh shares through block deals which make up less than 1% stake in the company. Post the sale, the promoter group will have a 51.9% stake in the company, the release added.

In the previous week, Goldman Sachs initiated coverage on the company with a "buy" call and target price of ₹2,800. The brokerage backs the company to have a bigger opportunity in the mobility segment as it’s exposed to premiumisation and electrification. 

Price Action: Shares of CE Infosystems were down 4.68% to ₹2,301 on Wednesday morning. 

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