EMudhra files draft papers with Sebi to raise funds via IPO

Digital signature certificate provider eMudhra Ltd has filed preliminary papers with the capital markets regulator to raise funds through an initial share sale.

The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 200 crore and an offer for sale of 85.1 lakh shares by promoters and existing shareholders, the draft red herring prospectus (DRHP) filed with Sebi showed.

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As a part of the OFS, promoters -- Venkatraman Srinivasan and Taarav Pte Ltd -- will offload 32.89 lakh and 31.91 lakh equity shares, respectively.

In addition, Kaushik Srinivasan will divest 5.1 lakh equity shares, Lakshmi Kaushik 5.04 lakh shares, Arvind Srinivasan, 8.81 lakh shares and Aishwarya Arvind 1.33 lakh shares.

EMudhra may consider fundraising of Rs 39 crore through a pre-IPO placement. If such placement is undertaken, the fresh issue size will be reduced.

Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for the data centre proposed to be set up in India and overseas locations, develop products, invest in eMudhra INC and for general corporate purposes.

EMudhra is the largest licensed certifying authority in India, with a market share of 37.9 per cent in the digital signature certificate market space in Financial Year 2021, having grown from 36.5 per cent in FY 2020.

The company is engaged in digital trust services and enterprise solutions to individuals and organisations functioning in various industries.

It is a 'one-stop shop' player in secure digital transformation and provides a wide spectrum of services and solutions from issuance of certificates as a certifying authority to offering identity, authentication and signing solutions.

IIFL Securities, Yes Securities and Indorient Financial Services are the book running lead managers for the issue.