eMudhra To Debut on D-Street on Wednesday: What GMP Suggests About Listing Gains


eMudhra Listing Tomorrow: eMudhra, which is one of the largest certifying authorities in India, will make its stock market debut on Wednesday, June 1, 2022. The eMudhra IPO witnessed decent demand from investors, seeing a subscription of 2.72 times the number of shares offered in the three days of IPO. The company intends to garner about Rs 413 crore through fresh issue of equity shares aggregating up to Rs 161 crore and an offer-for-sale of 9,835,394 equity shares, aggregating up to Rs 252 crore by the shareholders and promoters. eMudhra is a certifying authority (CA) authorised by the controller of certifying authority (CCA) for the issuance of Digital Signature Certificates in India.

eMudhra IPO: Subscription Status

eMudhra IPO received total bids for 3.09 crore shares against 1.13 crore shares that were on offer, showed data. The portion set aside for the retail investors was subscribed 2.61 times while the shares allocated for qualified institutional buyers or QIBs were booked 4.05 times. The quota reserved for non-institutional investors or NIIs was booked 1.28 times.

eMudhra IPO: Objective

eMudhra intends to use the proceeds of the IPO towards repaying debt, funding working capital requirements, buying equipment for data centers, investing in business development, sales, marketing and other costs related to growth.

eMudhra IPO: Financials

eMudhra Ltd has a market share of 37.9 per cent in the digital signature certificates market space in financial year 2021 having grown from 36.5 per cent in Financial Year 2020. Some of its customers include Infosys, Tata Consultancy Services, Mashreq Bank, Baud Telecom Company, Cholamandalam MS General Insurance Company and Bharti AXA Life Insurance Company.

eMudhra IPO: GMP Today

Started in 2008, eMudhra is the largest digital signature certificate provider in India. It is engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations functioning in various industries. The IPO garnered very less interest in the grey market and the GMP was nil on a day ahead of the listing, which signals a tepid or discounted listing.

eMudhra IPO: Analysts’ Take

The company is posting growth in its revenues and profits with a gradually rising market share. It has a good list of its blue-chip clientele and has a good growth prospect in long term. Investors can hold if having long-term view whereas others can book profits, said Manoj Dalmia, founder and director at Proficient equities.

“The scale of operation is relatively modest and digital security and paperless transformation market is highly competitive. At the upper end of the price band, the post issue FY22 annualized P/E works out to 49.0x which we believe is factoring the positives. Hence, we recommend a Neutral rating on the issue,” said brokerage Angel One.

eMudhra is the largest licensed certifying authority in India, engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations.

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