eMudhra Ltd. IPO
eMudhra Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹256
Issue Price
Listing Price
₹271
Listing Price
Listing Gains
+₹15.00 (+5.86%)
Listing Gains
IPO Details
Bidding Dates
20 May - 24 May '22
Bidding Dates
Min. Investment
₹14,094
Min. Investment
Lot Size
58.00
Lot Size
Price Range
₹243 - ₹256
Price Range
Issue Size
400 Cr
Issue Size
Subscription Rate
- Retail Individual Investor2.61x
- Non-Institutional Investor1.28x
- Qualified Institutional Buyers4.05x
- Employees
About Company
Digital signature certificates provider eMudhra Ltd is set to launch its initial public offering (IPO) this week. eMudhra Ltd is the largest licenced Certifying Authority in India and provides services like digital signature certificates, individual/organizational certificates, SSL/TLS certificates and device certificates, a portfolio of digital security and paperless transformation solutions, mobile application security, multi-factor authentication, website security testing, IT policy assessment, etc.
eMudhra’s business is divided into two verticals, Digital Trust Services and Enterprise Solutions. It has issued over 50 million digital signature certificates through the network of 88,457 channel partners across India. The company was serving 36,233 retail customers and 563 enterprises as of September 30, 2021.
eMudhra IPO will open for subscription on May 20 and close on May 24. Anchor investors can bid for the IPO on May 19, as per the Red Herring Prospectus (RHP).
The price band for the IPO has been fixed at Rs 243 to Rs 256 per share. It comprises a fresh issue of Rs 161 crore and an Offer For Sale (OFS) of 98.35 lakh shares, aggregating up to Rs 251.79 crore, by promoters and existing shareholders. At the upper price band, eMudhra expects to raise Rs 412.79 crore through the IPO.
The fresh issue size has been cut from Rs 200 crore after the company raised Rs 39 crore via a pre-IPO placement of 16.03 lakh shares.
Meanwhile, in the OFS, promoters Venkatraman Srinivasan and Taarav Pte Ltd will sell 32.89 lakh equity and 45.16 lakh equity shares, respectively. Additionally, Kaushik Srinivasan will offload 5.1 lakh equity shares, Lakshmi Kaushik will sell 5.04 lakh equity shares, Arvind Srinivasan will divest 8.81 lakh equity shares and Aishwarya Arvind will sell 1.33 lakh equity shares in the OFS.
The company proposes to utilise the proceeds from the fresh issue to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data centres, develop products, investment in eMudhra INC and for general corporate purposes.
Financial Snapshot -eMudhra Ltd IPO
Ethos Ltd has reported inconsistency in its financial performance over the last few years. In the table provided below, you can get a snapshot of Ethos in recent years.
| Financial Year | Total Assets | Total Revenues | Profit After Tax |
|---|---|---|---|
| March 2019 | Rs 119.51 crore | Rs 101.68 crore | Rs 17.44 crore |
| March 2020 | Rs 158.71 crore | Rs 116.80 crore | Rs 18.42 crore |
| March 2021 | Rs 191.91 crore | Rs 132.45 crore | Rs 25.36 crore |
Important Dates - eMudhra Ltd IPO
| Application opens on | 20th May 2022 |
| Last date of application | 24th May 2022 |
| Date of Allotment | 27th May 2022 |
| Refund begins from | 30th May 2022 |
| Credit of shares to Demat | 31st May 2022 |
| Listing date | 1st June 2022 |
Why should you invest in eMudhra Ltd. IPO?
With a market share of 37.9%, eMudhra is the largest digital signature certificate provider in India. It is the only Indian company to be directly recognised by renowned browsers and document processing software companies including Microsoft, Apple, Mozilla, and Adobe.
eMudhra Ltd. IPO - SWOT Analysis
Strengths
eMudhra Ltd is the largest licensed certifying authority in India. The company has been posting decent growth in revenue and profit and its market share is also rising. It has been posting growth in its top and bottom lines with a gradually rising market share. It has a technology-backed infrastructure to support quality and security of services and solutions.
Weaknesses
The company is highly dependent on technology and is subject to various Indian and international laws and regulations regarding privacy and data security. Its business is also dependent on one channel partner for a significant portion of its revenues.
Opportunities
The eMudhra has great potential for future growth with its blue-chip clientele. The Digital Trust Services market which includes SSL/TLS certificates, Digital Signature Certificates and IoT device certificates have strong growth potential. IoT is a fast-growing market and would push the need for device certificates. The IoT device certificates market is expected to grow in double digits in the next 5 years.
Threats
Any compromise in its security measures is a potential threat. It is also highly dependent on data centers for the efficient functioning of its technology platform. The company faces significant competition from both established and new companies offering trust services, digital security and paperless transformation solutions.
eMudhra Noteworthy Highlights
Check out some of the key details and information about eMudhra before investing:
- eMudhra is the largest licensed certifying authority in India with a market share of 37.9% in the digital signature certificates market in FY2021 versus 36.5% in FY20.
- The company’s retail customers grew to 1.15 lakh from 58,872 in FY19, while its enterprise customers increased to 518 from 249.
- In the IPO, the company has reserved 50% of the offer for qualified institutional buyers (QIB), around 35% for retail investors and the remaining 15% for non-institutional investors (NII).
- The lot size of eMudhra IPO is 58 shares and a retail-individual investor can apply for up to 13 lots.
- IIFL Securities, Yes Securities and Indorient Financial Services are the book running lead managers for the issue.
How to apply for eMudhra Ltd. IPO?
You can apply for the eMudhra Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an eMudhra Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
