Mr.Venkatraman Srinivasan, Executive Chairman, eMudhra Limited
MUMBAI, MAY 24, 2022 (GPN): The Initial Public Offering (IPO) of Bengaluru-based eMudhra Limited (“Company”), the largest licensed Certifying Authority (“Certifying Authority” or “CA”) in India with a market share of 37.9% in the digital signature certificates market space in FY 2021, received bids of 3,09,02,516 shares against the offered 1,13,64,784 equity shares, at a price band of ₹243-256, according to the data available on the stock exchanges. Overall the issue was subscribed 2.72 times on the last day of bidding.
The Qualified Institutional Investors and Retail investors was subscribed 4.05 and 2.61 times respectively. Non Institutional Investors portion was subscribed 1.28 times. The issue opened for subscription on Friday, May 20 and closed on May 24, 2022.
The IPO consists of a fresh issue of equity shares aggregating to Rs 161 crore and an offer for sale (OFS) of up to 9,835,394 equity shares. The proceeds from its fresh issuance worth Rs 35 crore will be utilised for the repayment or prepayment of borrowings, in full or part of all or certain borrowings; Rs 40.22 crore for funding working capital requirements; Rs 46.36 crore for purchase of equipment’s and funding of other related costs for data centres; Rs 15.03 crore for funding of expenditure related to product development; Rs 15.27 crore for investment in the company for development, sales, marketing for future growth and general corporate purposes.
IIFL Securities Limited, Yes Securities (India) Limited, and Indorient Financial Services Limited are the Book Running Lead Managers and Link Intime India Private Limited is the registrar to the Issue.
Company Information
eMudhra is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries.
Since inception it has issued over 50 million digital signature certificates for 1.43 Lakh retail customers and as of December 31, 2021, it had 91,259 channel partners for Digital Trust Services spread across various States and Union Territories in India, and out of its 539 system integrator partners, 267 were present in India and balance present internationally across United States of America, Europe, Middle East and Africa and Asia Pacific, where it provides its solutions and services.
The company reported a jump of 13% in its revenue from operations to Rs 131.59 crore for the year ending March 31, 2021 from Rs 116.45 crore in the previous year, primarily due to increase in the international operations especially in Middle East and Africa (MEA) region and due to increase in average realisation in digital signature certificates. The company’s profits grew 37.68% in FY21 to Rs 25.36 crore, from Rs 18.42 crore in FY20. For the nine-month period ended December 31, 2021 revenue from operations stood at 137.24 crore, and net profit stood at Rs 30.34 crore.
The table below shows subscription data for all the category of investors:
| eMudhra Limited
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| Sr.No. | Category | No.of shares offered / reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 31,34,329 | 1,26,87,152 | 4.05 |
| 1(a) | Foreign Institutional Investors (FIIs) | – | 11,12,730 | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | – | – |
| 1(c) | Mutual Funds | – | 92,34,238 | – |
| 1(D) | Others | – | 23,40,184 | – |
| 2 | Non Institutional Investors | 24,69,137 | 31,72,194 | 1.28 |
| 2(a) | Corporates | – | 3,16,622 | – |
| 2(b) | Individuals (Other than RIIs) | – | 27,39,978 | – |
| 2(c) | Others | – | 1,15,594 | – |
| 3 | Retail Individual Investors (RIIs) | 57,61,318 | 1,50,43,170 | 2.61 |
| 3(a) | Cut Off | – | 1,29,24,024 | – |
| 3(b) | Price Bids | – | 21,19,146 | – |
| 4 | Employee Reserved | – | – | – |
| 4(a) | Employee (Cut off) | – | – | – |
| 4(b) | Employee (Price) | – | – | – |
| 5 | Reservation PortionShareholder | – | – | – |
| 5(a) | RPS (Cut off) | – | – | – |
| 5(b) | RPS (Price) | – | – | – |
| Total | 1,13,64,784 | 3,09,02,516 | 2.72 | |
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