EMudhra Ltd IPO | Motilal Oswal
EMudhra Ltd IPO | Motilal Oswal

EMudhra Ltd IPO

Opening Date

20, May 2022

Closing Date

24, May 2022

Face Value

₹5 per equity share

IPO Price Band

₹243 to ₹256 per equity share

Minimum Order Quantity

58 Shares

Issue Size

₹412.79 Crs

The IPO season has once again blossomed in the Indian Stock Market. LIC - India’s biggest IPO till date was live for subscription, at last, garnering a total subscription rate of 2.95 times. Now, moving forward, let’s look at the latest IPO that is going live in the upcoming week , which is - eMudhraLimited. In this article, we will discuss its operations, financials, and other details to help you decide if this IPO is investment worthy or not!

About eMudhra -

eMudhra is the largest licensed Certifying Authority (“Certifying Authority” or “CA”) in India with a market share of 37.9% in the digital signature certificates market space for Financial Year 2021, having grown from 36.5% in Financial  Year  2020.   The company is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organizations functioning in various industries. As a part of its Digital Trust Services, the company issues a range of certificates including individual/organizational certificates, SSL/TLS certificates and device certificates (used in IoT use cases) to build a digital trust backbone.

Summary of Financial Information

 

        Particulars

                                For the year/period ended (Rs in millions)

31, Dec, 2021

31, March, 2021

31, March, 2020

31, March, 2019

       Total Assets

2514.11

1919.14

1587. 11

1195.15

     Total Revenue

1383.04

1324.54

1167.99

1016.80

     Profit After Tax

303.40

253.59

184.16

174.36

 

  • eMudhra Ltd details 

Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - eMudhra Ltd date and its share price.

  • eMudhra Ltd date 

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from 20th, May and will be available for subscription until 24th May 2022.

  • eMudhra Ltd issue size 

The total issue size of the latest eMudhra Ltd IPO is declared to be ₹412.79 crores. The fresh issue of shares aggregate up to ₹161 Crores. The offer for sale of shares aggregate up to ₹251.79 Crores.

50% of the offer is reserved for QIBs (Qualified Institutional Buyers), 35% for Retail Investors, and the Balance 15% for NIBs (Non-Institutional Investors).

  • eMudhra Ltd share price

The price band of the company’s upcoming IPO is declared to range between ₹243 to ₹256 per equity share

  • eMudhra Ltd listing

Since the IPO of eMudhra Ltd IPO is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

  • eMudhra Ltd objectives

The net proceeds of the Fresh Issue, i.e. gross proceeds of the Fresh Issue less the offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilized in the following manner:

- Repayment or prepayment, in full or in part, of all or certain borrowings availed by our Company;

- Funding working capital requirements of the Company; and

- Purchase  of  equipments  and  funding  of  other  related  costs  for  data  centers proposed to be set-up in India and overseas locations

- Funding of expenditure relating to product development

- Investment  in  eMudhra  INC  for  augmenting  its  business  development,  sales, marketing and other related costs for future growth

- General corporate purposes

  • eMudhra Ltd Key Strengths

- Largest licensed Certifying Authority in India with 37.9% market share in the digital signature market

- Position to capture favorable dynamics of the Indian digital markets

- Only Indian company to be admitted as a member of the European Cloud Signature Consortium as well as in the global forum

- Longstanding and growing customer base

- Partnerships with leading Indian and global channel partners and enterprise solution partner

  • eMudhra Ltd risks

- As a provider of identity and security solutions, the company poses a potential target for cyber-attacks.

- All the operations are dependent on technology.

- Dependent on one channel partner for a significant portion of revenue.

- The digital security and paperless transformation market is competitive.

Conclusion

If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online Demat Account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you already have an existing account, you can  start your online trading and invest in the upcoming IPO's.

With a plethora of companies coming forward with their own IPOs in quick succession, you can keep a track of all the upcoming IPOs by regularly following our IPO calendar.

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