The initial public offering (IPO) of digital signature certificate provider eMudra was open for public subscription on Friday and ended on Tuesday, May 24, 2022. The firm has fixed its price band. 243-256 One share for its issue. it has raised 124 crores from anchor investors prior to its issue.
By 10:45 am on the second day of the issue, IPO The BSE data shows that the retail investors category is subscribed 1.25x and NII 0.07x with 0.65x.
The company has cut the size of the fresh issue 200 crore 161 crores. In addition, there will be an offer-for-sale (OFS) of 98.35 lakh shares by the promoters and existing shareholders.
After capturing a premium over the past few sessions, there has been no GMP activity for eMudra stocks in the gray market today. The shares of the company are expected to be listed on the stock exchanges BSE and NSE on June 1, 2022.
Proceeds from the new issue will be used to pay off debt, support working capital requirements, purchase equipment and other related costs for data center costs proposed to be set up in India and overseas locations, developing products, e-currency Investments in INC and will be used for general. corporate objectives.
“The scale of operations is relatively modest and the 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 positive. Therefore, we recommend a neutral rating on this issue,” said brokerage Angel One.
eMudhra is the largest licensed certification authority in India, engaged in the business of providing digital trust services and enterprise solutions to individuals and organizations.
“There are no listed peers doing business similar to EML. on the higher price band of 256, the company is seeking a P/E multiplier of 114.5x, which appears to be high. Further, in view of the current turmoil in the global equity market, we assign a “Subscribe with Caution” rating to the issue,” said Choice Broking.