eMudra IPO Membership Day 2: eMudra IPO Open for subscription on Monday, May 23, 2022, and will be open until Wednesday, May 24, 2022. The company which is the largest Licensed Certifying Authority (CA) in the Digital Signature Certificate market in India intends to generate around Rs. 413 crore by way of fresh issue of equity shares up to Rs 161 crore and offer for sale of 9,835,394 equity shares up to Rs 252 crore by shareholders and promoters. The company is engaged in the business of providing Digital Trust Services and Enterprise Solutions like Personal / Organizational Certificates, Digital Signature Certificates etc. One day before the offer opens to the public, e-currency said it has raised Rs 124 crore from anchor investors ahead of its initial public offering. Aditya Birla Sun Life Mutual Fund (MF), Motilal Oswal MF, Nippon India MF, SBI MF, Baring Private Equity India, Hornbill Orchid India Fund, Pinebridge India Equity Fund and Abacus Growth Fund are among the investors who participated in the anchor book.
eMudra IPO: Subscription Status
eMudhra was subscribed 0.48 times at the end of the first day on Friday. price band of IPO 243- 256 per share and lot size is 58 shares. Only retail investors have shown interest, as the portion set aside for them was subscribed 0.94 times. QIBs, on the other hand, are yet to bid, while the quota for non-institutional investors is just 0.04 times or 4 per cent.
IIFL Securities Limited, Yes Securities (India) Limited and Indoor Financial Services Limited are the Book Running Lead Managers and Link Intime India Private Limited is the Registrar of the Issue.
eMudra IPO: GMP Today
Shares of eMudhra IPO are not trading in gray market today. On Friday, the gray market premium (GMP) of eMudhra IPO was minus Rs 5. The company has fixed the price band for the offer shares between Rs 243-256. Hence, at the upper end of the price band, eMudhra shares are trading at Rs 251 in the gray market.
eMudra IPO: Financials
The Company’s Revenue and Profit After Tax (PAT) has been growing for the last three financial years and has even exceeded the previous numbers in the first 9 months of FY22. In FY19, the company’s total revenue was Rs 101.6 crore as against Rs 116.8 crore in FY20 and Rs 132.4 crore in FY21. In the first 9 months of FY22, its total revenue is Rs 138.3 crore.
Similarly, eMudhra Limited reported PAT at Rs 17.4 crore in FY19 which increased to Rs 18.4 crore in FY20 from Rs 25.3 crore in FY21. In the first 9 months of FY22, eMudhra Limited has registered a PAT of Rs 30.3 crore. Hence, the financial position of the Company has remained strong for the last four financial years.
eMudra IPO: Purpose
The eMudra IPO proceeds from the issue will be used for repayment in full or part of all or part of the borrowings; working capital requirements; Financing of equipment procurement and other related costs for data centers to be set up in India and abroad.
eMudra IPO: Should you subscribe?
Angel One is neutral on public issues. Angel One’s research report on eMudra IPO said, “eMudra has an established position as a licensed CA with a strong network of channel partners, a diverse customer base and will continue to grow in overseas markets as well. The IPO will use part of the proceeds to improve its data center infrastructure. However, the scale of operations is relatively modest and the digital security and paperless transformation market is highly competitive. At the upper end of the price band, post-issue The FY22 annualized P/E works out to 49.0x, which we believe is factoring positive. Therefore, we recommend a neutral rating on this issue.”
The views and investment suggestions of experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decision.
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