eMudhra IPO Subscription Day 2: eMudhra IPO will be open for registration on Monday, May 23, 2022 and will remain open until Wednesday, May 24, 2022. The company, the largest recognized certified authority (CA) in the digital signature certificate market in India, plans to raise about Rs 413 crore by a new issue of shares with a total of Rs 161 crore and an offer for sale of 9,835,394 shares with a total of Rs 252 crore by the shareholders and promoters. The company is engaged in providing digital trust services and business solutions such as individual/organizational certificates, digital signature certificates etc. A day before the offering was opened to the public, eMudhra said it has raised Rs 124 crore from anchor investors ahead of its first 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 Abakkus Growth Fund are among the investors who participated in the anchor book.
eMudhra IPO: Subscription Status
eMudhra was registered 0.48 times by the end of day one on Friday. The price range of the IPO is set at Rs 243-256 per share and the lot size is 58 shares. Only retail investors have expressed interest, as the portion reserved for them has been subscribed 0.94 times. On the other hand, QIBs have yet to bid, while the non-institutional investor quota only gained 0.04 times or 4 percent.
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 of the issue.
eMudhra IPO: GMP Today
Shares of eMudhra IPO are not trading on the gray market today. On Friday, the gray market premium (GMP) of eMudhra IPO stood at minus Rs 5. The company has set the price band for the shares on offer at between Rs 243-256 each. So at the high end of the price band, eMudhra shares are trading at Rs 251 in the gray market.
eMudhra IPO: Finance
The company’s sales and profits after tax (PAT) have increased over the past three fiscal years and also surpassed previous figures in the first 9 months of FY22. In FY19, the company’s total revenue was Rs 101.6 crore, which increased by Rs 116.8 crore in FY20 and Rs 132.4 crore in FY21. In the first 9 months of FY22, the total turnover was Rs 138.3 crore.
Similarly, eMudhra Limited reported PAT at Rs 17.4 crore in FY19 which rose at Rs 18.4 crore in FY20 which further rose at rs 25.3 crore in FY21. In the first 9 months of FY22, eMudhra Limited has reported a PAT of Rs 30.3 crore. As a result, the company’s financials have remained healthy for the past four fiscal years.
eMudhra IPO: target
The proceeds of the eMudhra IPO of the issuance will be used for: – full or partial repayment of all or certain loans; working capital requirements; purchase of equipment and financing of other related costs for data centers proposed in India and in overseas locations.
eMudhra IPO: Should You Subscribe?
Angel One is neutral on the public issue. Angel One research report on eMudhra IPO says: “eMudhra is well established as a licensed CA with a strong network of channel partners, a diverse customer base and it will use a portion of the IPO proceeds to grow in overseas markets and to leverage its data. However, the size of the operation is relatively modest and the digital security and paperless transformation market is very competitive At the high end of the price band, the annualized post-issue FY22 P/E is 49.0x, which considers the positives in our view, so we recommend a neutral assessment of the matter.”
The expert opinions and investment tips in this News18.com report are their own and not the website’s or its management. Users are advised to contact certified experts before making any investment decisions.
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