The QIB category received the maximum subscription, followed by the retail and non-institutional categories.
eMudhra’s initial public offering (IPO) received bids for 3.09.02.516 shares versus 1.13.64.784 shares offered, according to stock market data. The issue was subscribed 2.72 times.
The qualified institutional buyers (QIBs) category was drawn 4.05 times. The private investors category was drawn 2.61 times. The non-institutional investors category was subscribed 1.28 times.
The issue opened for bidding on Friday (May 20, 2022) and closed on Tuesday (May 24, 2022). The price range of the IPO has been set at Rs 243-256 per share. An investor was allowed to bid for at least 58 shares and multiples thereof.
The IPO involved a new issue of shares worth up to Rs 161 crore and an offer to sell up to 98,35,394 shares by existing shareholders.
The company proposes to use the net proceeds of the new issues to finance the prepayment or partial repayment of all or certain of the company’s borrowings of Rs 35 crore, to fund its working capital needs of Rs 40.22 crore, to purchase equipment and to be used to fund other related costs for data centers to be set up in India and overseas locations at Rs. 46.36 crore, to fund product development-related expenses at Rs. Rupees, Investment in eMudhra INC to increase business development, sales, marketing and other related expenses for the future of Rs 15.27 crore and the remainder for general corporate purposes.
Prior to the IPO, eMudhra completed the allotment of 48,37,336 shares to anchor investors on Thursday 19th May 2022 at an allotment price of Rs.256 per share totaling Rs.123.84 crore.
eMudhra is a licensed Certificate Authority involved in issuing digital signature certificates in India under their eMudhra brand. The company is licensed by the Department of Information Technology’s Controller of Certifying Authorities (CCA) and operates under the guidelines of the Information Technology Act. eMudhra is the largest licensed Certificate Authority in India with a 37.9% market share of the digital signature certificate market in FY2021 after growing from 36.5% in FY2020.
It also offers various business solutions and services related to digital signatures such as authentication solutions, paperless office solutions and solutions to secure data in transit. In addition, the company has solutions for the Internet of Things (IoT) and other solutions related to Public Key Infrastructure (PKI).
The company reported net profit of Rs.30.6 crore and revenue of Rs.137.24 crore for the nine months ended 31 December 2021.
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(This story was not edited by Business Standard staff and is automatically generated from a syndicated feed.)
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