QIB category received maximum subscription, followed by retail and non-institutional categories.
The initial public offer (IPO) of eMudhra received bids for 3,09,02,516 shares as against 1,13,64,784 shares on offer. The issue was subscribed 2.72 times.
The qualified institutional buyers (QIBs) category was subscribed 4.05 times. The retail investors category was subscribed 2.61 times. The non-institutional investors category was subscribed 1.28 times.
The issue opened for bidding on Friday (20 May 2022) and it closed on Tuesday (24 May 2022). The price band of the IPO was fixed at Rs 243-256 per share.
The IPO comprised a fresh issue of equity shares worth up to Rs 161 crore and an offer for sale of up to 98,35,394 equity shares by existing shareholders.
The company proposes to utilize the net proceeds of the fresh issue towards funding prepayment or repayment in part of all or certain borrowings availed by the company amounting to Rs 35 crore, funding its working capital requirements amounting Rs 40.22 crore, purchase of equipment and funding of other related cost for data centers proposed to be set up in India and overseas locations amounting Rs 46.36 crore, funding of expenditure relating to product development amounting Rs 15.03 crore, investment in eMudhra INC for augmenting its business development, sales, marketing and other related cost for future amounting Rs 15.27 crore and the balance towards general corporate purposes.
Ahead of the IPO, eMudhra on Thursday, 19 May 2022, finalized allocation of 48,37,336 equity shares to anchor investors at an allocation price of Rs 256 per share, aggregating to Rs 123.84 crore.
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eMudhra is a licensed certifying authority involved in issuing digital signature certificates in India under its eMudhra brand. The company is licensed by the Controller of Certifying Authorities (CCA), Ministry of Information Technology, and operates under the guidelines set by the Information technology Act. eMudhra is the largest licensed certifying authority in India, with a market share of 37.9% in the digital signature certificate market space in FY2021, having grown from 36.5% in FY 2020.
It also provides various enterprise solutions and services around digital signatures like authentication solutions, paperless office solutions, solutions for securing data in transit. Apart from this, the company has solutions for Internet of Things (IoT), and other solutions around Public Key Infrastructure (PKI).
The company reported a net profit of Rs 30.6 crore and sales of Rs 137.24 crore in the nine months ended on 31 December 2021.
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