Bengaluru-based eMudhra Limited, the largest licensed Certifying Authority ("Certifying Authority" or "CA") in India with a market share of 37.9% in the digital signature certificates market space in FY 2021, has garnered Rs 123.83 crore from anchor investors ahead of its initial share sale that opens for public subscription on Wednesday. The company informed the bourses that it has allocated 48,37,336 shares at Rs. 256 per share on Thursday, May 19, 2022 to anchor investors.
Aditya Birla Sun Life Digital India Fund, Aditya Birla Sun Life Small Cap Fund, Motilal Oswal Dynamic Fund, Nippon India Small Cap Fund, SBI Technology Opportunities Fund, Baring Private Equity India, Hornbill Orchid India Fund, Pinebridge India Equity Fund, Abakkus Growth Fund are among the investors that participated in the anchor book.
Further, domestic mutual funds Aditya Birla Sun Life Digital India Fund, Aditya Birla Sun Life Small Cap Fund, Motilal Oswal Dynamic Fund, Nippon India Small Cap Fund and SBI Technology Opportunities Fund are among the investors that participated in the anchor book.
Out of the total allocation of 48,37,336 equity shares to the anchor investors 20,09,372 equity shares were allocated to 4 mutual funds through 5 schemes amounting to Rs 51.44 crore i.e. 41.54% of the Total Anchor Book Size.
eMudhra is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries.
Since inception it has issued over 50 million digital signature certificates. As of December 31, 2021, it had 1.43 Lakh retail customers and 91,259 channel partners for Digital Trust Services spread across various States and Union Territories in India. It also had 539 partners for its enterprise solutions of which 267 were present in India and balance present internationally across United States of America, Europe, Middle East and Africa and Asia Pacific, where it provides its solutions and services.
Some of its customers include Infosys Limited, TCS Limited, Bharti AXA Life Insurance Company Limited, Larsen & Toubro Infotech Limited, Hindalco Industries Ltd, Mashreq Bank, Baud Telecom Company, Cholamandalam MS General Insurance Company Limited, Thales DIS CPL India Private Limited, DB Schenker, JSW Steel Limited, operating in various industries such as banking, insurance, telecom, information technology, etc.
For the nine-month period ended December 31, 2021 revenue from operations stood at 137.24 crore, and net profit after tax Rs 30.34 crore. The company's revenue for the whole year ended March 31, 2021 was Rs. 131.59 crore and its net profit after tax for the year was Rs. 25.36 crore. The company's profits grew 37.68% in FY21 to Rs 25.36 crore, from Rs 18.42 crore in FY20.
IIFL Securities Limited, Yes Securities (India) Limited, and Indorient Financial Services Limited are the Book Running Lead Managers and Link Intime India Private Limited is the registrar to the Issue.
The IPO consists of a fresh issue of equity shares aggregating to Rs 161 crore and an offer for sale (OFS) of up to 9,835,394 equity shares. Out of the proceeds of the fresh issue, Rs 35 crore will be utilised for the repayment of borrowings, Rs 40.22 crore for funding working capital requirements; Rs 46.36 crore for purchase of equipment's and funding of other related costs for data centres; Rs 15.03 crore for funding of expenditure related to product development; Rs 15.27 crore for investment in the eMudhra Inc. (US) for development, sales, marketing for future growth and balance for general corporate purposes.
The Company is proposing to open its initial public offering of Equity Shares (the "Offer") on Friday, May 20, 2022 and close on Tuesday, May 24, 2022. The price band for the Offer has been determined at Rs 243 - Rs 256 per equity share.
The IPO will fetch Rs 412.79 crore at the upper end of the price band.
Investors can bid for a minimum of 58 equity shares and in multiples of 58 equity shares thereafter.
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.
The Offer is being made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.