Shares of eMudhra Limited, the largest licensed certifying authority in India, will debut on the Dalal Street on Wednesday. eMudhra stock will get listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) at 10 am on June 1. eMudhra initial public offering (IPO) received tepid response from the investors when it had opened for subscription earlier this month. The muted interest from the investors, negative grey market premium and volatile market condition indicated a flat-to-discounted listing for eMudhra shares.
eMudhra IPO opened for subscription from May 20-24. The price band for eMudhra IPO has been fixed at Rs 243-256 per share. The eMudhra IPO comprised a fresh issue aggregating up to Rs 161 crore and an offer-for-sale of up to 98,35,394 equity shares.
The public offer was subscribed 2.72 times over the 1.13 crore shares that were on offer. eMudhra IPO received bids of over 3.09 crore shares against the total issue size of over 1.13 crore shares, according to the data available with National Stock Exchange (NSE). The portion allocated for the qualified institutional buyers (QIBs) was subscribed 4.05 times, while those of non institutional investors was booked 1.28 times. The shares set aside for the retail individual investors (RIIs) was subscribed 2.61 times, the data showed.
Commenting on the eMudhra IPO valuation, Hem Securities said, “Company is bringing the issue at price band of Rs 243-256 per share at p/e multiple of 49x on post issue annualized 9Months
FY22 eps basis.”
eMudhra GMPeMudhra unlisted stocks was trading at a discount of Rs 5 in the grey market ahead of the listing. Tepid interest in the grey market signalled a flat listing for eMudhra shares on the bourses on June 1.
eMudhra Share Listing Today: What Should Investors Do
“e-Mudhra Limited received a soft response from the investors owing to rich pricing and jittery primary market sentiments. The company has significant market share but intensifying competition cannot be ruled out. Thus, as per the current scenario, the issue may list around Rs 250-260 near its issue price,” said Abhay Doshi, founder at UnlistedArena.com.
For investors of eMudhra IPO, Mohit Nigam, head – PMS, Hem Securities said, “eMudhra Limited is India’s largest licenced certifying authority. The company’s business is divided into two verticles digital trust services and enterprise solutions. The company and its shareholders raised Rs 413 crore from primary markets. The issue in unlisted market is trading with hardly 3 per cent gains. Seeing the current market scenario, weak listing is expected but we advise investors to hold the company for long term as it may give good returns in long term.”
On the public issue, Angel One earlier said, “eMudhra has an established position as licensed certifying authority with a strong network of channel partners, a diverse customer base and it will be using part of the IPO proceeds to grow in overseas markets as well improve its data center infrastructure. However, the scale of operation is relatively modest and digital security and paperless transformation market is highly competitive.”