20 May , 2022 By : Kanchan Joshi
Digital signature certificate provider eMudhra Ltd's initial public offering (IPO) will open for public subscription today. and conclude on Tuesday, May 24, 2022. The firm has fixed a price band of Rs243-256 a share for its issue. It has raised Rs124 crore from anchor investors ahead of its issue.
The company has cut the size of the fresh issue from Rs200 crore to Rs161 crore. Besides, there will be an Offer-For-Sale (OFS) of 98.35 lakh shares by promoters and existing shareholders. At the upper end of the price band, the IPO is expected to fetch Rs413 crore.
As per market observers, eMudhra shares are commanding a premium (GMP) of Rs8-10 in the grey market. Shares of the company are expected to list on the stock exchanges BSE and NSE on June 1, 2022.
Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data centre costs proposed to be set up in India and overseas locations, develop products, investment in eMudhra INC and for general corporate purposes.
“The scale of operation is relatively modest and digital security and paperless transformation market is highly competitive. At the upper end of the price band, the post issue FY22 annualized P/E works out to 49.0x which we believe is factoring the positives. Hence, we recommend a Neutral rating on the issue," said brokerage Angel One.
eMudhra is the largest licensed certifying authority in India, engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations.
It is a 'one stop shop' player in secure digital transformation and provides a wide spectrum of services and solutions from issuance of certificates as a certifying authority to offering identity, authentication and signing solution.
0 Comment