eMudhra IPO: Imudra Limited, the issuer of digital signature certificates, has set an issue price band of Rs 243-256 per share for its initial public offering (IPO) of Rs 413 crore. The company announced the development on Monday, according to a PTI report. The initial share sale will open to the public on May 20 and end on May 24.
According to the company, bidding for anchor investors will open on May 19.
The company has reduced the size of the new issue from Rs 200 crore to Rs 161 crore, the report said. Also, there will be an offer-for-sale (OFS) of 98.35 lakh shares by promoters and existing shareholders. At the top end of the price band, the public issue is expected to fetch Rs 412.79 crore.
eMudhra is engaged in the business of providing digital trust services and enterprise solutions to individuals and organizations working in various industries. It provides a wide range of services and solutions for identification, authentication and signing solutions, ranging from issuing certificates as a one-stop shop player and certified authority to secure digital conversions. The company has been in the business for over 12 years and has worked in more than 50 countries, according to the company’s website.
Promoters Venkataraman Srinivasan and Taarav Pte Ltd will offload 32.89 lakh equity and 45.16 lakh equity shares, respectively, as part of OFS.
Also, Kaushik Srinivasan will market 5.1 lakh equity shares, Lakshmi Kaushik 5.04 lakh equity shares, Arvind Srinivasan, 8.81 lakh equity shares and Aishwarya Arvind 1.33 lakh equity shares.
eMudhra IPO: How to use?
Proceeds from the new issue will be used for loan repayment, support for working capital requirements, purchase of equipment and other related expenses for proposed data centers in India and abroad.
Location, product development, investment in eMudhra INC and general corporate purposes.
Half of the issue is reserved for eligible institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
IIFL Securities, Yes Securities and Endorsement Financial Services are the book running lead managers for this issue.
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EMudhra is India’s largest licensed certification authority with a market share of 37.9 percent in the digital signature certificate market for the fiscal year 2021, up from 36.5 percent in fiscal 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.