Shares of eMudhra Limited, the largest recognized certifying authority in India, will debut on Dalal Street on Wednesday. eMudhra shares will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on June 1 at 10:00 AM. eMudhra initial public offering (IPO) received a lukewarm response from investors when it opened for subscription earlier this month. Subdued investor interest, negative gray market premium and volatile market conditions indicated a flat to discount listing for eMudhra shares.
eMudhra IPO open for registration May 20-24. The price range for the IPO of eMudhra is set at Rs 243-256 per share. The IPO of eMudhra included a new issue totaling Rs 161 crore and an offer for sale of up to 98,35,394 shares.
The public offer was subscribed for 2.72 times above the 1.13 crore shares offered. eMudhra IPO received bids of more than 3.09 crore shares against the total issue size of more than 1.13 crore shares, according to the data available from the National Stock Exchange (NSE). The share allocated to qualified institutional buyers (QIBs) was subscribed 4.05 times, while that of non-institutional investors was booked 1.28 times. Shares reserved for private individual investors (RIIs) were subscribed to 2.61 times, the data shows.
Reply to the eMudhra IPO valuationHem Securities said: “The company is launching the issuance at a price range of Rs 243-256 per share at a p/e multiple of 49x after issuance on an annualized basis 9Months
FY22 eps base.”
eMudhra GMPeMudhra unlisted shares traded at a discount of Rs 5 in the gray market prior to listing. Moderate interest in the gray market meant a flat listing for eMudhra shares on the exchanges on June 1.
eMudhra Stock Listing Today: What Should Investors Do?
“e-Mudhra Limited received a soft response from the investors due to its rich pricing and twitchy primary market sentiments. The company has a significant market share, but intensification of competition cannot be ruled out. So, under the current scenario, the issue could be around Rs 250-260 near the issue price,” said Abhay Doshi, founder of UnlistedArena.com.
Speaking to investors of eMudhra IPO, Mohit Nigam, Head of PMS, Hem Securities, said: “eMudhra Limited is India’s largest licensed certificate authority. The company’s business is divided into two branches: digital trust services and business solutions. The company and its shareholders raised Rs 413 crore from primary markets. The problem in the unlisted market is trading with barely 3 percent profit. Given the current market scenario, a weak listing is expected, but we advise investors to hold the company for the long term as it can provide good returns over the long term.”
On the public issue, Angel One previously said, “eMudhra is well established as a licensed certificate authority with a strong network of channel partners, a diverse customer base and it will use a portion of its IPO proceeds to grow in overseas markets and its data center infrastructure. however, the size of the operation is relatively modest and the digital security and paperless transformation market is highly competitive.”
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