eMudhra IPO GMP, Subscription, Financials; Last Chance to Invest Today, Should you?


eMudhra IPO, which is currently open for public subscription and can be subscribed to until the end of Tuesday (May 24), has so far witnessed a booking of 102 per cent. The digital signature certificate provider intends to garner about Rs 413 crore through the fresh issue of equity shares aggregating up to Rs 161 crore and an offer for sale worth Rs 252 crore by the shareholders and promoters.

eMudhra IPO: Subscription Status

eMudhra IPO, which was opened for subscription on May 20, has so far been subscribed 1.02 times. Retail investors have evinced good interest, as the portion reserved for them has been subscribed 1.73 times. On the other hand, the qualified institutional buyers (QIBs) quota got 0.47 times bids, while the quota for non-institutional investors got just 0.17 times or 17 per cent. The price band of the IPO has been fixed at Rs 243-256 a share and the lot size is 58 shares.

eMudhra IPO: GMP Today

According to ipowatch.in, the shares of eMudhra are currently trading at a premium of minus Rs 10 in the grey market, over the upper band of Rs 256. It means the shares in the grey market are trading below the issue price. It indicates that the expected listing price of the company’s shares is going to be lower thatn the issue price. The premium gets fluctuated based on the sentiments in the markets.

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eMudhra IPO: Analysts’ Take

Hem Securities in its note said, “Looking after decent financial performance of company and unique business model, we recommend ‘subscribe’ on the issue.”

Brokerage firm Angel One in its report has said eMudhra has an established position as licensed CA with a strong network of channel partners, a diverse customer base and it will be using part of the IPO proceeds to grow in overseas markets as well improve its data center infrastructure. However, the scale of operation is relatively modest and 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 the positives. Hence, we recommend a Neutral rating on the issue,” it added.

eMudhra IPO: Basic Details

The proceeds from the issue will be utilised for – repayment in full or in part of all or certain borrowings; working capital requirements; purchase of equipment and funding of other related costs for data centers proposed to be set up in India and overseas locations.

The company’s revenue and profit after tax (PAT) has been ascending for the last three financial years and it has surpassed previous numbers in the first 9 months of the FY22 as well. In FY19, the company’s total revenue stood at Rs 101.6 crore that went up at Rs 116.8 crore in FY20 and Rs 132.4 crore in FY21. In first 9 months of FY22, its total revenue stands at Rs 138.3 crore.

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Similarly, eMudhra Limited reported PAT at Rs 17.4 crore in FY19 that went up at Rs 18.4 crore in FY20, which further ascended at rs 25.3 crore in FY21. In first 9 months of FY22, eMudhra Limited has reported a PAT of Rs 30.3 crore. Hence, financials of the company have remained sound for last four financial years.

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.

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