India’s leading digital signature service provider, eMudhra, has filed a draft red herring prospectus with SEBI to float its IPO. As per the preliminary papers, this company’s public issue will include a fresh issuance of equity shares worth Rs. 200 crores. Moreover, it will comprise a secondary issue; promoters and existing investors will be offloading 85,10,638 shares in total via an offer for sale (OFS).
Are you interested in applying for this forthcoming initial share sale? Before placing the IPO order, make sure to be aware of some key details. Let’s find out what they are.
A Quick Look at Some Crucial eMudhra IPO Details
Here are some essential details regarding eMudhra’s initial public offering:
- Type of Issue: Book-built issue
- Face Value: 5 per equity share
- Listing on:NSE as well as BSE
The Bangalore-based company will utilise the net proceeds from the public issue to achieve these objectives:
- Repay/prepay outstanding borrowings partially/fully
- Meet working capital requirements
- Finance the purchase of equipment and meet expenses that are to be incurred for the establishment of data centres in India and abroad
- Fulfil general corporate purposes
- To invest in Mudhra INC for enhancing marketing, sales and business devolvement to facilitate the expansion of operations in the future
Aside from knowing the IPO-related details, investors must ensure to consider various important aspects regarding the company before applying for its IPO. Let’s take a look at a few of these factors in the next section.
Competitive Strengths of eMudhra
The following are some noteworthy strengths of eMudhra:
- This company is India’s largest certifying authority (CA) that has a valid license.
- eMudhra provides its services to all types of subscribers that utilise a digital signature certificate (DSC).
- Its market share surged to 37.9% in FY2021, representing an increase of 1.4% in comparison to last year. Moreover, its enterprise customers increased to 518 during that period.
- This company closely collaborates with state governments and more than 20 private and PSU banks.
- eMudhra’s customer base includes individuals as well as organisations working in different sectors of the economy.
Here Are Some Vital Financial Highlights
The table below provides an insight into the financial position of eMudhra:
|Financial Year||Overall Revenue (Rs.)||Total Assets (Rs.)||Overall Expenses (Rs.)||Profit after Tax (Rs.)|
|2018-19||1,195.15 million||1,016.80 million||781.34 million||174.36 million|
|2019-20||1,587.11 million||1,167.99 million||937.81 million||184.16 million|
|2020-21||1,919.14 million||1,324.54 million||1,012.74 million||253.59 million|
eMudhra offers comprehensive solutions in relation to secure digital transformation. Its wide range of offerings includes the issuance of digital signature certificates, authentication and signing services. This company has managed to deliver a consistent performance in the past few years, recording significant bottom line growth.
That said, if you’re looking to apply for this IPO make sure to take various factors into account, including the weaknesses and threats of the company. Furthermore, you might want to consider doing a competitive analysis.
Once you decide to invest, you can place the eMudhra IPO order by signing into your Angel One online trading account. That said, if you do not have a Demat account, open one with Angel One before the IPO opens for subscription.
Frequently Asked Questions
- Who are the merchant bankers for eMudhra’s initial share sale?
The lead managers for eMudhra IPO are Yes Securities, Indorient Financial Services, IIFL Securities.
- What is the price band of eMudhra’s initial share sale?
The price band of eMudhra is yet to be announced.
- Who are the promoters of eMudhra?
The promoters of eMudhra are Venkatraman Srinivasan and Taarav Pte Ltd.