eMudhra List: eMudhra Limited, India’s largest recognized certification authority, made its debut on the exchanges today. Shares of the company started trading on the NSE at Rs 270 per share, up 5.5 percent from the IPO price of Rs 243-256 per share. On the BSE, the stock debuted at Rs 271 each. The IPO of Rs 412.79 crore was subscribed by investors earlier this month and was fully subscribed by all classes except retail investors. The company had a market cap of Rs 2,115.76 crore at its market debut. eMudhra is a Certificate Authority (CA) authorized by the Certificate Authority (CCA) controller to issue digital signature certificates in India.
Overall, the issue was subscribed to 2.27 times, thanks to strong bids from qualified institutional buyers whose quotas bid 4.05 times. HNI and the retailer’s portions were registered 1.28 and 2.61 times, respectively. eMudhra is the largest licensed certificate authority in India with a 37.9 percent market share in the digital signature certificate market in fiscal 2021, after growing 36.5 percent in FY20.
It is a one-stop-shop player in secure digital transformation, offering a broad spectrum of services and solutions, from issuing certificates as a certificate authority to providing identity, authentication and signing solutions. Some of its clients include Infosys, Tata Consultancy Services, Mashreq Bank, Baud Telecom Company, Cholamandalam MS General Insurance Company and Bharti AXA Life Insurance Company.
eMudhra plans to use the proceeds from the IPO to pay back debt, finance working capital requirements, purchase data center equipment, invest in business development, sales, marketing and other costs associated with growth.
What should investors do now?
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “eMudhra Ltd. has made its debut at Rs. 271.45 or 6 percent above the issue price. The company’s lukewarm but positive listing can be attributed to current market conditions eMudhra is India’s largest licensed certificate authority and the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple and Adobe. Furthermore, eMudhra is the only Indian company accredited to Webtrust, making their digital signature certificates instantly recognized by browsers around the world, enabling them to issue digital signature certificates in many countries.”
“The growing demand for data privacy, data protection and digital transformation will help the company grow significantly in the medium to long term. However, the competitive nature of the sector, the company entering unfamiliar geographies and business areas, and the rich pricing of the issuance make it suitable for long-term investors after the listing. Those who have applied for quote profits can keep a stop loss of Rs. 260,” Meena added.
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