IPO Update: Public Subscription Period for eMudhra IPO will begin on May 20

According to PTI, eMudhra Ltd’s initial public offering (IPO) will take place on May 20, 2022.

According to the Red Herring Prospectus, the Initial Public Offering (IPO) will close on May 24. On May 19, anchor investor bidding will commence.

The fresh issuance has been reduced from Rs.200 crore to Rs.161 crore by the firm. Following a pre-IPO placement, the Bengaluru-based firm allocated 16,03,617 shares for Rs.39 crore. Additionally, the promoters and existing shareholders will make an Offer For Sale (OFS) of 98.35 lakh shares.

Venkatraman Srinivasan and Taarav Pte Ltd, the promoters, would sell 32.89 lakh and 45.16 lakh equity shares, respectively, as part of the OFS. furthermore, Kaushik Srinivasan will divest 5.1 lakh equity shares, Lakshmi Kaushik 5.04 lakh equity shares, Arvind Srinivasan, 8.81 lakh equity shares and Aishwarya Arvind 1.33 lakh equity shares.

ABOUT eMudhra Ltd 

eMudhra Ltd, located in Bengaluru, has set a price range of Rs.243-256 per share for its initial public offering, valuing the business at Rs.2,000 crore at the high end of the range.

The company had previously said that its initial public offering (IPO) would begin on May 20 and end on May 24. On May 19, the anchor investor auction will begin. The shares will begin trading on June 1st after allotment on May 30.

The IPO includes a fresh issuance of Rs.161 crore and an offer to sell up to 9.84 million shares by existing shareholders and promoters.

Venkatraman Srinivasan owns up to 3.29 million shares in the OFS, while Taarav Pte Ltd owns up to 4.52 million, Kaushik Srinivasan owns up to 5.11 lakh shares, Lakshmi Kaushik owns up to 5.04 lakh shares, and Arvind Srinivasan owns up to 8.82 lakh shares. The company intends to raise Rs.413 crore through an IPO in the top price range. The revenues will be utilised to pay down debt and provide working cash. It plans to utilise the profits to purchase equipment and fund data centres in India and other countries.

The banks in charge of the transaction are IIFL Securities, Yes Securities, and Indorient Financial Services.

With a market share of 37.9% in the digital signature certificates market in financial year 2021, up from 36.5 percent in financial year 2020, the company is India’s largest licenced certifying authority. From 58872 in FY2019, it now has 1.15 lakh retail customers. In addition, from 249 to 518, the company’s business clients increased.

In FY21, the company’s total revenue increased to Rs.132.45 crore from Rs.116.45 crore the previous year. The period’s net profit was Rs.25.36 crore, compared to Rs.18.42 crore the previous year.

With a market share of 37.9% in digital signature certificates in FY21, the firm is the market leader. It’s a company engaged in the business of providing digital trust services and enterprise solutions to individuals and organizations functioning in various industries.