The issue, which opened for subscription on Friday, May 20, will close for bidding on Tuesday, May 24. The company is selling its shares in a lot size of 58 equity shares. The price range for the IPO is Rs 243-256.
According to the data from BSE, investors made bids for 1,26,67,374 equity shares or 1.11 times compared with 1,13,64,784 equity shares offered for subscription by 11.15 am on Tuesday.
The quota for retail bidders was subscribed 1.88 times, whereas the allocation for non-institutional bidders was subscribed merely 20 per cent. The qualified institutional buyers made bids for 47 per cent of the quota allocated to them.
The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15 per cent allocation. The remaining 35 per cent shares will be given to retail bidders.
The net proceeds from the fresh issue will be utilized towards pre-paying or repaying in part or full the existing loans, working capital requirements, equipment purchases and setting up data centres across India and overseas.
The company reported a profit of Rs 25.36 crore in the financial year 2020-21, against a net loss of Rs 18.41 crore in the previous year. Its revenue increased to Rs 132.45 crore from Rs 116.8 crore during the period under review.
It clocked a profit of Rs 30.34 crore in the nine-month period ended December 2021, with a total revenue during the same period reported at Rs 138.30 crore.
Brokerages have a mixed review over the issue. The majority believe the company is at the numero uno position in the growing digital segment, whereas others say that the valuations are fully priced, leaving no headroom for further upside.
broking, which has a ‘neutral’ rating to issue, said eMudhra has strong brand recognition, decent market share in digital services in India and healthy relationship with channel partners.
It plans to innovate products, grow in international markets, as well as, expand customer base which will drive future growth, it said. “On the valuation front, at an upper price band of Rs 256, the company is trading at PE of 44x basis FY22 annualized EPS.”
The company is the largest licensed certifying authority in India, a one-stop shop solution provider in secure digital transformation and is well-positioned to capture the favourable industry dynamics in India and globally, said Hem Securities.
“It is one of the largest players in the Indian Digital Trust Services market with a market share of 17.8 per cent. Despite being just 12 years in the market, eMudhra has better brand recognition and stronger channel partner relationship,” it added with a subscribe rating to the issue.
eMudhra has allocated 48,37,336 equity shares to anchor investors at Rs 256 per share, aggregating the transaction size to Rs 123.83 crore, according to a circular uploaded on BSE website.
IIFL Securities, Yes Securities and Indorient Financial Services are the book running lead managers to the issue, whereas Link Intime India is the registrar to the issue.