Digital signature certificates certifying authority eMudhra Limited on Friday launched its initial public offering (IPO) to raise around ₹413 crore through the primary market. The offer comprises of a fresh issue and an offer for sale by the promoter and other shareholders selling their stake in the company.
The IPO comprises fresh issue of up to 1,13,64,784 equity shares aggregating up to ₹161 crore and an offer for sale of up to 9,835,394 equity shares, including an anchor portion of 48,37,336 equity shares. The company will use the funds to repay its loans, fulfil its capital requirements, purchase equipment, product building and investment in eMudhra INC.
The IPO that has opened today will close on May 24, 2022, with a post-issue modification period on May 25 (10 am to 11 am). As per the latest available data, the issue has been subscribed around 0.40 times on the first day so far, with the retail individual investors' quota filled 0.78 times.
The price range for this 100% book building public issue has been fixed at ₹243-256, with each share having a face value of ₹5. Interested buyers can bid for a lot of 58 shares and in multiples thereof.
The maximum subscription amount for retail investors has been fixed at ₹2 lakh, while QIB investors can bid for 1,13,64,752 equity shares in a multiple of 58 shares. NIB investors can bid for 82,30,432 equity shares in a multiple of 58 shares.
Around 48,37,336 equity shares will be allocated to anchor investors at ₹256 per share (including a share premium of ₹251 apiece). The data shows that out of 48,37,336 shares, 2,009,372 shares or 41.54% were allocated to four domestic mutual funds via five schemes.
eMudhra is the largest licensed certifying authority in India, with a market share of 37.9% in the digital signature certificates market space in FY21. The company is engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations functioning in various industries.
The company's revenue from operations stood at ₹137.2 crore in nine months period ending December 31, 2021, while profit during the period stood at ₹36.7 crore. Its total borrowing during that period was ₹30.9 crore, the DRHP data shows.
With the rise of COVID-19, as companies moved to the work from home mode, the need for adoption of digital solutions that facilitate remote fulfilment of transactions has increased, says the company in its draft red herring prospectus filed before the market regulator Securities & Exchange Board of India.
eMudhra claims to be the only Indian company to be directly recognised by browsers and document processing software companies such as Microsoft, Mozilla, Apple and Adobe, allowing it to sell digital identities to individuals or organisations and issue SSL/TLS certificates for website authentication, globally.
The company’s contingent liabilities, including income tax appeal and bank guarantees, stand at ₹60.68 crore as of December 31, 2021.
Originally incorporated as ‘3i Infotech Consumer Services Ltd', eMudhra was sold to Indus Innovest Technologies Private Ltd in 2010, and the name was changed to ‘eMudhra Consumer Services Ltd’. The name was further changed to ‘eMudhra Limited on November 5, 2014.
IIFL Securities Limited, YES Securities (India) and Indorient Financial Services Limited" are the book running lead managers of the public issue.
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