eMudhra Limited is the largest licensed Certifying Authority in the country. The company’s business operation has been divided into two major segments. It is Digital Trust Services and Digital Enterprise Solutions. eMudhra Limited’s business provides digital services like individual or organizational certificates, SSL/TLS certificates, digital signature certificates, and device certificates. Let’s have a look at eMudhra IPO Dates, Price, GMP, Allotment, RHP and much more.
The company offers a service portfolio of digital security. It also engages in IT policy assessment, paperless transformation solutions, mobile application security, website security testing, and multi-factor authentication. eMudhra Limited is the only Indian company registered as CA with tech giants such as Microsoft, Adobe, Mozilla, and Apple. Till now, eMudhra has issued more than 50 million digital signature certificates.
It has a wide established network of 88,457 channel partners. Currently, eMudhra is linked with 36,233 retail customers and 563 enterprises. The top 10 banks have used the company’s service portfolio in the country. and 6 top automotive companies also use it. eMudhra has a close association with 19 top companies in the country as per the market capitalization.
OBJECTS OF THE IPO ISSUE:
- Repayment and pre-payment of the borrowings of the company
- Working capital
- Product Development
- Strategic Investment in eMudhra INC
- Upgradation and purchase of additional equipment
- General corporate purpose
eMUDHRA IPO DETAILS:
eMudhra Limited is a company with its headquarters in Bengaluru. The company recently got approval from SEBI. It earlier filed its DRHP for approval. The company is coming up with its IPO offer. eMuhdra IPO offer of the company is Rs. 412.79 crores. It is a mix of an OFS offer of Rs. 251.79 crores. It corresponds to 9,835,394 equity shares of the company. It also contains an issue of fresh equity worth Rs. 161.00 crores by the company.
The selling stakeholders as per the OFS are as follows:
| Promoter | Number of shares offloaded in OFS |
| Venkatram Srinivasan | 3,289,257 equity shares of the company |
| Taarav Pte Ltd | 3,191,490 equity shares of the company |
| Kaushik Srinivasan | 510,638 equity shares of the company |
| Lakshmi Kaushik | 504,307 equity shares of the company |
| Arvind Srinivasan | 881,869 equity shares of the company |
| Aishwarya Arvind | 133,077 equity shares of the company |
The company stated that it would utilize funds as below:
| Repayment and pre-payment of the borrowings of the company | Rs. 35.00 crores |
| Working capital | Rs. 40.22 crores |
| Product Development | Rs. 15.03 crores |
| Strategic Investment in eMudhra INC | Rs. 15.27 crores |
| Upgradation and purchase of additional equipments | Rs. 46.36 crores |
| General corporate purpose | Remaining funds |
The company fixed the price band to Rs. 243.00 – Rs. 256.00 per equity share. Post allotment, the company’s shares will be listed on BSE and NSE. The IPO issue offer constitutes 20.65 % of the company’s post-issue fully paid-up equity capital base. The company also completed its Pre – IPO allotment round. In it, the company allotted 16,03,617 equity shares of the company.
It was allotted at Rs. 243.00 per share. It was done to raise Rs. 39.00 crores funding. It reduced the IPO fresh equity offer to Rs. 161.00 crores. Post IPO offer, the fully paid-up equity capital of the company will increase. It will increase from Rs. 35.89 Crores to Rs. 39.04 crores. On the upper band of IPO, the company’s market share will be Rs. 1998.65 crores.
| IPO Opening Date | May 20, 2022 |
| IPO Closing Date | May 24, 2022 |
| Issue Type | Book Building Type Issue IPO |
| Face Value | Rs. 5 per equity share of the company |
| IPO Price Band | Rs. 243 – Rs. 256 |
| Market Lot | One lot of 58 equity shares of the company |
| Minimum Order Quantity | One lot corresponding to 58 equity shares of the company |
| Minimum Order Price | Rs. 14,848 |
| Maximum Order Quantity | 13 lots corresponding to 754 equity shares of the company |
| Maximum Order Price | Rs. 193,024 |
| Maximum Retail Order Quantity | 13 lots corresponding to 754 equity shares of the company |
| Minimum HNI Order Quantity | 14 lots corresponding to 812 equity shares of the company |
| Listing At | BSE, NSE |
| Issue Size | 16,124,450 equity shares of the company, which corresponds to Rs. 412.79 Crores |
| Fresh Issue | 6,289,056 equity shares of the company, which corresponds to Rs. 161.00 Crores |
| Offer for Sale | 9,835,394 equity shares of the company, which corresponds to Rs. 251.79 Crores |
| Basis of Allotment Type | % Of the Offer been allotted by IPO |
| Qualified Institutional Buyer | 50 |
| Non-Institutional Investor | 15 |
| Retail | 35 |
| Price Band Announcement: | May 12, 2022 |
| Anchor Investors Allotment: | May 19, 2022 |
| Basis of Allotment Date | May 27, 2022 |
| Initiation of Refunds | May 30, 2022 |
| The Credit of Shares to Demat Account | May 31, 2022 |
| IPO Listing Date | June 01, 2022 |
STRENGTH AND OPPORTUNITIES OF eMUDHRA IPO:
- eMudhra is the largest certifying authority in the country. The company holds an in this nation-based license by the GoI.
- eMudhra is a one-stop digital transformation solution provider.
- eMudhra holds a sheer dominance in its business sector. It holds 37.9 percent of the digital signature market share. eMudhra is also a market leader in digital transformation solutions.
- eMudhra has a market share of 19 percent shares in the digitized trust services market.
- eMudhra, till now, is the only company to receive accreditation through membership from Certifying Authority or Browser forum. It is also the only company to have membership in European Cloud Signature Consortium.
- eMudhra Digital Trust and Enterprise Solutions operate data centers. It helps them to add facilities and improve their financial matrix.
- eMudhra has a long-standing good association with its clients. The clients of the company are reputed firms. Such as:
| JSW Steel | Baud Telecom Company | Larsen and Toubro Infotech Limited |
| Hindalco Industries Limited | Infosys Limited | Mindtree |
- eMudhra has an established market presence. The company has a strong association with many foreign tech giants. It includes Microsoft, Mozilla, Apple, Adobe, etc.
- The company also has a differentiated product portfolio. It gives a competitive advantage to their business operation.
- eMudhra is known for making high-quality items at affordable prices.
- The company has registered a significant increase in its customer base. It also registered an increase in its business solutions.
- eMudhra has years of experience. The management team of eMudhra has developed the company’s business operation to be a customer-centered one.
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WEAKNESS AND THREATS OF eMUDHRA IPO:
- eMudhra needs to examine its strategy and execution carefully. To succeed, it needs to look at both its customers and its market position.
- eMudhra lacks research to develop new resources. It also needs to upgrade and enhance its existing resources. It will help the company to have a strong business outlook.
- eMudhra has planned an aggressive growth outlook. The company wants to operate in a new business vertical never operated before. So, the plan and execution need to be extremely important.
- eMudhra business engagement depends heavily on a robust technology platform. So, any undervaluation of it can lead to an input cost increase. It will decrease the margins of the company. Also, it will impact the profitability and another financial matrix of the company.
- The company is highly vulnerable to cyber security and database mismanagement attacks.
- eMudhra has been accused of violating intellectual property rights.
- eMudhra uses open-source software. It has been used in the products of the company. It can result in legal action against the company if any manipulation has been found.
- eMudhra is also a fintech-based company. Currently, amidst the rise in inflation, the fintech company’s valuation has decreased significantly. eMudhra has currently concluded a rapid expansion plan. Expansion is all idea-based, which can be dangerous for the company’s operation.
FINANCIAL TRENDS OF eMUDHRA IPO:
| Particulars | For the year ending with the amount as in Rs in millions | ||||
| 31 December 21 | 31 March 21 | 31 March 20 | 31 March 19 | ||
| Total Assets | 2,541.11 | 1,919.14 | 1,587.11 | 1,195.15 | |
| Total Revenue | 1,383.04 | 1,324.54 | 1,167.99 | 1,016.80 | |
| Profit After Tax | 303.40 | 253.59 | 184.16 | 174.36 |
| PARAMETERS | MARCH 21 | MARCH 20 | YoY % |
| Earnings Per Share (Rs) | 2.39 | 2.29 | 4.73 |
| CEPS (Rs) | 4.86 | 3.85 | 26.31 |
| DPS (Rs) | 0.00 | 0.00 | 0.00 |
| Book NAV/Share (Rs) | 14.07 | 11.90 | 18.22 |
| Tax Rate (%) | 18.67 | 19.99 | -6.62 |
| Core EBITDA Margin (%) | 30.34 | 27.43 | 10.63 |
| EBIT Margin (%) | 24.33 | 20.34 | 19.63 |
| Pre – Tax Margin (%) | 23.69 | 19.77 | 19.87 |
| PAT Margin (%) | 19.27 | 15.81 | 21.86 |
| Cash Profit Margin (%) | 25.93 | 23.20 | 11.78 |
| ROA (%) | 14.47 | 13.24 | 9.27 |
| ROE (%) | 27.82 | 24.46 | 13.74 |
| ROCE (%) | 23.13 | 20.00 | 15.63 |
| Asset Turnover (x) | 0.75 | 0.84 | -10.33 |
| Sales/Fixed Asset (x) | 0.90 | 1.08 | -17.29 |
| Working Capital/Sales (x) | 12.02 | 6.03 | 99.16 |
| Fixed Capital/Sales (x) | 1.12 | 0.92 | 20.90 |
| Receivable days | 53.13 | 70.11 | -24.22 |
| Inventory Days | 3.02 | 2.73 | 10.51 |
| Payable days | 110.09 | 91.79 | 19.94 |
| PER (x) | 0.00 | 0.00 | 0.00 |
| PCE (x) | 0.00 | 0.00 | 0.00 |
| Price/Book (x) | 0.00 | 0.00 | 0.00 |
| EV/Net Sales (x) | 0.55 | 0.65 | -16.27 |
| EV/Core EBITDA (x) | 1.76 | 2.35 | -25.10 |
| EV/EBIT (x) | 2.24 | 3.21 | -30.01 |
| EV/CE (x) | 0.37 | 0.48 | -21.75 |
| M Cap / Sales | 0.00 | 0.00 | 0.00 |
| Net Sales Growth (%) | 13.00 | 14.63 | -11.14 |
| Core EBITDA Growth (%) | 26.33 | -0.07 | 37087.20 |
| EBIT Growth (%) | 35.19 | 8.10 | 334.39 |
| PAT Growth (%) | 37.70 | 5.62 | 570.77 |
| EPS Growth (%) | 4.73 | -4.79 | 198.67 |
| Total Debt/Equity (x) | 0.33 | 0.45 | -25.69 |
| Current Ratio (x) | 1.32 | 1.57 | -15.72 |
| Quick Ratio (x) | 1.30 | 1.52 | -14.72 |
| Interest Cover (x) | 38.07 | 35.46 | 7.38 |
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PROMOTER HOLDING OF eMUDHRA IPO:
The promoter of the company is as follows:
- Venkatraman Srinivasan
- Taarav Pte.
| Pre-Issue Share Holding | 84.47% |
| Post Issue Share Holding |
COMPANY CONTACT INFORMATION
eMudhra Limited
Sai Arcade, 3rd Floor,
No. 56 Outer Ring Road, Devarabeesanahalli,
Bengaluru 560103,
Phone: 080-4227 5300
Email: companysecretary@emudhra.com
Website: https://www.emudhra.com/index.jsp
eMUDHRA IPO REGISTRAR
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: emudhra.ipo@linkintime.co.in
Website: https://linkintime.co.in/
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